The Independent Petroleum Marketers Association of Nigeria (IPMAN) applauded the plan by Dangote Refinery to begin the distribution of petrol and diesel free of charge to marketers nationwide.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, said the plan is “very favourable to independent marketers, adding that it would make petroleum products cheaper across the country.
Join our WhatsApp ChannelUkadike, who appeared on Channels Television Sunrise Daily on Friday, said President of the Dangote Group, Aliko Dangote, recognized the problem in the petroleum sector and is ready to tackle it by taking proactive steps.
While highlighting that the proposed distribution model by Dangote is favourable to independent marketers, Ukadike shared that IPMAN was born out of competition and is ready to flow with the business ethics dictated by healthy competition in the petroleum market in Nigeria.
He further stated that apart from making fuel cheaper and more accessible to consumers nationwide, Dangote’s plan will also remove unnecessary costs for marketers.
“This initiative is something we wholeheartedly welcome because it is going to bring cheaper fuel to our doorsteps,” Ukadike stated.
According to him, the distribution subsector has faced a couple of challenges over the years, including a poor pipeline network connecting its depots, which has affected the availability of petroleum products in all parts of the country.
“Products are not being transported efficiently. We are bearing the brunt of bringing these products from the seaside of the country, where members of the Depot and Petroleum Marketers Association of Nigeria (DAPMAN) have their tank farms, and that is where we move our products from,” he stated.
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However, he said, Dangote’s initiative would lift a significant part of the burden from independent marketers.
“If you look at Dangote’s statement, you will see that independent marketers have been relieved of a heavy load of transporting products to various points. This is what the pipelines are supposed to be doing. Dangote is trying to use his CNG trucks to bring these products to our doorsteps.”
The IPMAN spokesperson also commended Dangote’s plan to deploy about 4000 CNG-powered trucks to distribute petroleum products to marketers, noting that it is cost-effective.
He said IPMAN has keyed into that with some independent marketers having converted their trucks to use CNG and more working towards that.
He said that because of the developments in the petroleum industry, including deregulation of the downstream, marketers are already rebranding their filling stations to align with the current needs.
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He disclosed that many independent marketers have built pumps for CNG in their filling stations, getting ready to key into the presidential Compressed Natural Gas (PCNGi) initiative and supply CNG to Nigerians.
He dismissed fears about monopoly in the petroleum market. He stated that Dangote refinery is currently selling petrol at N825 per litre to independent marketers while major marketers and DAPPMAN are selling at N910. “Where is the monopoly?” he queried.
He maintained that IPMAN is in full cooperation with Dangote refinery, adding that they are proposing to have a meeting with the management of the refinery next week to fine-tune the “strategic initiative.”
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.