The Independent Petroleum Marketers Association of Nigeria (IPMAN) has encouraged Dangote Petroleum Refinery to lower its prices to remain competitive and outdo importers.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) pointed out that importers were gaining a competitive edge due to their lower prices, resulting in higher demand for their products compared to those offered by local refiners like Dangote.
Alhaji Abubakar Maigandi, IPMAN’s National President, spoke with The Nation over the phone, advising the 650,000 barrels per day Dangote Refinery to embrace competition and adjust its pricing accordingly to remain competitive.
“Since there is no subsidy, you can buy your products anywhere and bring it provided the product is okay for consumption.
“They are going outside to buy because it is cheaper than his own.
“Dangote should beat importers with price. He should lower his price so that anyone who goes outside the country to buy will loose,” he said.
The IPMAN boss debunked the Dangote claim of importation of dirty fuel.
He said the users who fuel their haulage trucks with imported fuel have not complained in any way.
This is coming on the heels of Dangote Petroleum Refinery’s accusation of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing import licenses for dirty fuel to marketers.
Maigandi said: “The quality is the same because most of our trucks are not complaining. Most of the people who are using trucks are not complaining that the diesel is bad.”
He however called on Dangote to allow IPMAN members to distribute its petroleum products directly since they have their retail outlets nationwide.
His words: “We advise Dangote to come and partner with independent petroleum marketers. “That is the only solution. If he doesn’t partner with independent petroleum marketers, you cannot sell your commodity.”
NMDPRA’s Corporate Communications, General Manager, Mr. George Ene-Ita said the Authority was yet to get authorization to respond to the Dangote Refinery outburst.
He said: “I am sorry, I don’t have a reaction. I still don’t have a reaction.
“It is not in my hands. I have not been given the authorization. We are still working on it.”
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) supported the NMDPRA for issuing licenses to marketers to import fuel.
The National President, Dr. Billy Harry said the license approval was in line with the Petroleum Industry Act.
He insisted that it is not enough to rely on one refinery for petroleum products in Nigeria.
His words: “Everybody has the right to his/her opinion. I am a user and I have not bought any dirty fuel approved by NMDPRA.
“They have approved what is rule of the law and that is what PETROAN does. “PETROAN always insists on quality.
There is nothing wrong with other importers coming importing petroleum products because one refinery work promising us different things is not sufficient.
“The only thing is that when the import licenses are issued, do we have access to foreign exchange to make those imports work? Otherwise, PETROAN supports NMDPRA to consistently give import licenses to qualify retail outlets owners and tank farms owners.”
Harry advocated for the promotion of multiple refineries and diverse sources in the country, arguing that increased competition would lead to lower prices, as a competitive market would drive down costs and benefit consumers.
He said, “My advice is that Dangote is in a competitive environment and he should try to make sure that Dangote Refinery is on export processing zone.
“It is a free trade zone so we need to be sure we understand the rule of how that operates and we encourage multiple refineries in Nigeria and multiple sources of petroleum products that will drive down the process because of competitive value.”
The nation
