In recent developments regarding the supply of Premium Motor Spirit (PMS) from Dangote Refinery, petroleum products marketers have firmly stated that there was no boycott of the refinery’s petrol. This clarification comes amidst various claims and confusion surrounding the distribution of petrol from the newly operational facility.
Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), addressed the issue, asserting that the reports of a boycott were incorrect. Adewole emphasized the importance of transparent operations within the sector and highlighted the need for clear modalities concerning the offtake of petrol from Dangote Refinery.
According to Adewole, “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.” He further explained that petroleum marketers were awaiting government clearance on the specifics of the petrol distribution arrangement. Adewole reassured that DAPPMAN and its members are committed to meeting Nigeria’s energy needs and are aligned with efforts to prevent a monopoly that could potentially hinder economic growth and development.
Federal Government Announces Commencement of Petrol Supply
On Friday, the Federal Government confirmed that petrol supply from Dangote Refinery would commence on Saturday, following the finalization of an agreement on pricing and supply terms. Zacch Adedeji, a member of the Presidential Committee on the Sale of Crude Oil and Refined Products and Chairman of the Federal Inland Revenue Service, made this announcement in Abuja.
Adedeji revealed that the Nigerian National Petroleum Corporation (NNPC) would remain the sole off-taker of petrol from the Dangote Refinery. Other marketers will obtain the product through NNPC, ensuring a regulated and streamlined supply process. He also disclosed that NNPC would initiate the supply of 385,000 barrels of crude oil to Dangote Refinery starting October 1, 2024, as part of the agreement to support the refinery’s operations.
In light of these developments, Adewole reiterated that the alleged boycott was unfounded and emphasized that the offtake of petroleum products is governed by market dynamics, including price, quality, and accessibility. He underscored that the adherence to these factors ensures that the distribution of products is fair and competitive.
“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,” Adewole stated. He urged for continued support and cooperation among stakeholders to maintain the integrity and efficiency of the petroleum supply chain.
The clarification from DAPPMAN and the Federal Government’s announcement reflect ongoing efforts to address and streamline the distribution of petrol from Dangote Refinery. As the sector adjusts to new arrangements, the emphasis remains on transparency and effective management to ensure the smooth delivery of petroleum products across Nigeria.
