Good news: Marketers give timeline for Dangote to slash petrol cost

• Petroleum Marketers said having a tank farm set aside will be beneficial for members to distribute Dangote fuel
• Its national welfare officer claimed that having a tank farm of its own would make product distribution simple and smooth
• He expressed hope that the outrageous fuel pump prices of Dangote gasoline would eventually decrease

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Distributing fuel from Dangote Refinery and Petrochemical to its members will benefit more from having a tank farm set aside for this purpose, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said.

The Nigerian National Petroleum Company Limited (NNPC Ltd) and marketers have already begun talking about how to carry out the strategy. Photo Credit: Dangote Refinery
Source: UGC

According to the statement, possessing a tank farm of one's own would enable the product to be distributed effortlessly throughout all the corners of Nigeria.

In an interview with the New Telegraph over the weekend, IPMAN John Kekeocha, the National Welfare Officer, said that the association, through its President, Abubakar Shettima Magandi, was already in discussions with the Nigerian National Petroleum Company Limited (NNPC Ltd) over the implementation of the plan.

Kekeocha said,

“IPMAN has had several meetings with NNPC Ltd. The President, Alhaji Shettima Magandi, has had meetings with NNPC Ltd on how to get bulk supply from NNPC Ltd in such a way that we will have our own tank farm, which is in serious progress.

He said that the main reason for this is that IPMAN, which has the most stores nationwide, will be able to sell and spread this product easily if NNPC Ltd is going to receive a mass supply.

Petrol price to drop

He expressed optimism that Dangote gasoline's exorbitant fuel pump price would finally drop,

“We will buy from NNPC Ltd because we believe that it will be cheaper and easier for IPMAN.”

Kekeocha said,

“Dangote has just started production, so the cost of production will possibly be a little bit higher but as times goes on, their cost of production will be getting lower and lower until a reasonable price is fixed which will make it more comfortable for Nigerians.“There is one thing Nigerians need to understand or they fail to neglect. With the deregulation of the downstream and the removal of subsidy, it means that the market or the downstream, the buying and production of petroleum products is not free for all.

Therefore, anybody doing it, is doing it as a private business. “Dangote is not a Nigerian company. It is an individual company, therefore, it buys crude from NNPC Ltd and produces it, it has to produce and sell to make gain. NNPC Ltd is only buying from them as an off-taker.

Reasons Marketers Cannot Lift Petrol From Dangote Refinery

Legit.ng reported that the the Nigerian National Petroleum Company Limited has said that oil marketers cannot import or buy petrol from Dangote refinery because the product is not viable and cost-reflective.

Dapo Segun, executive vice president of the NNPC's downstream division, said no one was excluded from petrol imports.

He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved import permits.

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Source: Legit.ng