₦airaland Forum

Petroleum products marketers have declared that there was never a boycott of Dangote Refinery’s Premium Motor Spirit, PMS, (petrol).

However, Olufemi Adewole, Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, told Vanguard, there was a need to get the modalities right.

Adewole said: “The sector needs to operate transparently in a manner that allows all stakeholders to thrive and contribute significantly to the quest of ensuring availability, reliability and accessibility of petroleum products nationwide.”

Meanwhile, on Friday, the Federal Government disclosed that the supply of petrol from Dangote Refinery will commence tomorrow after both parties reached an agreement on pricing and supply.

Speaking in Abuja, a member of the Presidential Committee on the Sale of Crude Oil and Refined Products, and Chairman of the Federal Inland Revenue Service, Zacch Adedeji said NNPC will remain as the sole off-taker of petrol from the refinery with other marketers getting the product from the national oil company.

In return, he added, NNPC Limited would commence the supply of 385,000 barrels of crude oil to Dangote Refinery on October 1, 2024.

‘There was no boycott’

On the issue of petrol, Adewole, the Executive Secretary of DAPPMAN, said the alleged boycott of Dangote Refinery’s petrol was incorrect.

He explained that petroleum marketers were still awaiting clearance from the government on the modalities regarding the offtake of petrol from the refinery.

Adewole said: “DAPPMAN, as evidenced by patronage of various products from the Dangote Refinery by its members, believes firmly in meeting Nigeria’s energy needs.

“And (DAPPMAN) remains aligned to calls for the nation not to end up in a monopoly, which will only jeopardize our economic growth and development.”

“Offtake will, in keeping with the laws of demand and supply, gravitate towards sources where products can be bought at a lower price, better quality and seamless accessibility,” he stated.

He reassured Nigerians that DAPPMAN would continue to work towards giving the nation top-notch fuel solutions while securing the sustainability of the sector.

FreeStuffsNG:
Adewole said: “The sector needs to operate transparently in a manner that allows all stakeholders to thrive and contribute significantly to the quest of ensuring availability, reliability and accessibility of petroleum products nationwide.”

CodeTemplarr:
Why is NNPCL the sole buyer feom Dangote if they arent willing to subsidize? The arrangement for subsidy is such that NNPCL gives crude and takes petrol. How much crude is needed to satisfy local petrol need?

FreeStuffsNG:
NNPCL is technically exchanging its crude it sells in naira to DRL for the refined products. It makes perfect business sense to be the offtaker and marketers will now buy from it at a strategic margin.

CodeTemplarr:
what happens if another local marketer approaches DRL and buys excess petrol. There will be excess petrol at some point because NNPCL is offering Dangote Refinery Limited 385K BPD of crude oil and we know DRL can process 650K BPD. That effectively points to corruption between the NNPCL and their supervisors in the govt at federal level.

FreeStuffsNG:
Excess petrol is not even in the picture yet because others, including the relatives of Alhaji Dangote, still import.

This is a milestone and I believe that other issues that come up along the way will be resolved in the patriotic interest of Nigeria and business imperative of all the stakeholders.
What we should avoid is a monopoly and scarcity not excess petrol that can be easily exported to even earn more forex.
Remember that NNPCL is a significant part owner of Dangote Refinery. Most of you keep forgetting this fact.

HenryWilliams:
6% ownership is significant to you?

FreeStuffsNG:
Excess petrol is not even in the picture yet because others, including the relatives of Alhaji Dangote, still import.

This is a milestone and I believe that other issues that come up along the way will be resolved in the patriotic interest of Nigeria and business imperative of all the stakeholders.
What we should avoid is a monopoly and scarcity not excess petrol that can be easily exported to even earn more forex.
Remember that NNPCL is a significant part owner of Dangote Refinery. Most of you keep forgetting this fact.

CodeTemplarr:
If others import petrol while NNPCL exchanges as much as 60% of the 650k bpd dangote says a quarter of should satisfy local market, what happens to the remaining ~35% of 650k bpd excess output? Thats a huge margin or error o. Dont you think so?

FreeStuffsNG:
Again, we have not even reached the full capacity production of the refinery so the issue of excess doesn't arise.
DRL has the option of importing crude or buying at a premium from IOCs producing crude oil in Nigeria but those ones will not accept naira.

CodeTemplarr:
tlThere must be excess. Dangote and Edwin says a quarter(25%) of 650k bpd can cover local needs, NNPCL says they are giving ~60% of 650k bpd to DRL. That leaves a reverse or opposite shortfall of around 30% of 650k bpd.
The discrepancy is obvious to even a competent primary 3 pupil.

CodeTemplarr:
NNPCL making it look like the smaller marketers buying from them boycotted Dangote petrol. The culprits pulling all the evil strings here is NNPCL and their govt associates. Now they have agreed to give Dangote 385k bpd in exchange for God knows how many millions of litre of petrol. If there is excess petrol after satisfying local market, how is the remaining ever accounted for?

The above scenario leaves the room for NNPCL top staff members to lower prices before selling off accumulated local petrol to smugglers.