THE INDEPENDENT Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter, has commended the planned direct distribution of Premium Motor Spirits (PMS) by Dangote Petroleum Refinery to address long standing limitations in the downstream industry.
Mr Tekena Ikpaki, IPMAN Chairman, made that remark while speaking to the News Agency of Nigeria (NAN) in Port Harcourt on Wednesday.
National Record recalls that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) had raised alarm over the plan by Dangote Refinery to start direct nationwide distribution of petrol and diesel.
In a statement issued on Monday, PETROAN spokesperson, Mr Joseph Obele, said the move by Dangote could have consequences on the country’s downstream sector. According to him, such consequences include widespread job losses and the shutdown of small businesses.
Similarly, PETROAN National President, Dr Billy Gillis-Harry, warned that such strategy could create a monopolistic market structure, stifling competition and threatening thousands of livelihoods in the sector.
“With a production capacity of 650,000 barrels per day, Dangote Refinery should be positioning itself to compete with global refiners rather than engaging in direct distribution within Nigeria’s downstream sector,” Gillis-Harry said, adding that the move undermines the survival of independent marketers, truck owners, filling station operators, and modular refinery operators who rely on the existing supply chain structure.
However, Mr Ikpaki, the chairman of IPMAN, called for continued regulatory oversight so as to maintain a level playing field that would accommodate all marketers irrespective of size.
He noted that the supply bottlenecks, which had adversely limited the ability to serve the end users efficiently and sustainably, would become a thing of the past with the new distribution strategy.
“We believe that such a multi-source supply model is essential to building a robust, competitive, and fair petroleum distribution ecosystem.
“More supply options mean greater flexibility for marketers, better pricing mechanisms, and, ultimately, more stability for Nigerian consumers at the pump,” he said.
Commending the initiative, Ikpaki also noted that the programme, when fully implemented, would stand as a testament to an effective public-private partnership and good industrial leadership.
Also speaking, Mr Chijioke Odimbu, a Shell Petroleum Development Corporation (SPDC) retiree, commended the refinery for its efforts to improve the PMS distribution.
According to him, with 4, 000 CNG trucks, the bottleneck in distribution will be a thing of the past since it will be distributed all over Nigeria which will bring down the cost of the product.
He observed that the high cost of the PMS was due to transportation costs but added that the refinery must be sure to produce enough fuel so that the effort would not be hampered.
“Even when you have the 4,000 trucks and you don’t have enough PMS to distribute, the trucks will still be useless.
“So, the procurement of the trucks is a very viable idea but availability of the product is a very important one to consider,” Odimbu said.
In his remarks, Mr Charles Ndudi, a bus driver in Port Harcourt, said that he was looking forward to the implementation of the planned distribution project.
According to him, if logistics cost is subtracted from the overhead on the product, then the fuel price will definitely be reduced; transportation and living standard will become less burdensome if the planned is achieved
Mrs Imelda James, a foodstuffs trader, also commended the initiative, saying that direct supply would lower the petrol prices and positively impact the cost of flood and transportation. (NAN)
