Dangote Petroleum Refinery and Petrochemical (DPRP), has raised its ex-depot price of Premium Motor Spirit (PMS), otherwise known as petrol by N55 from N825 to N880 per litre.
Though the company did not make the hike public, TheCable quoted Abubakar Shettima, National President of the Independent Petroleum Marketers Association ot Nigeria (IPMAN), as confirming the new development on Saturday.
“We are aware that the refinery has reviewed the price to N880 per litre. Our members have been informed,” he was quoted of the development, which seems the first time the company, which has reduced the price of the product on about three occasions since December last year, is taking this step.
On June 15, the company announced that it would commence the direct distribution of products to end users nationwide with the acquisition of 4,000 new Compressed Natural Gas (CNG)-powered tankers, as well as credit facility for the customers.
Hear him: “This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development.
“It affirms our dedication to improving the availability and affordability of fuel in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians.
“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support.
“Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery,” Tony Chiejina, spokesman of the company, had said in a statement.
But in a quick riposte, oil marketers under the auspices of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), on Tuesday cried out to the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), urging them to halt the company’s move, saying it was a killer punch to their own source of daily bread.
Billy Gillis-Harry, PETROAN President, who trumpeted the cries of his members while appearing on The Morning Brief, a breakfast programme on Channels Television told his host on Tuesday: “If one company that is as massive as our brother’s (Aliko Dangote) can do all of this, of course, it is going to take us out of business.”
While insisting that regulators must correctly interpret and enforce the Petroleum Industry Act (PIA) in this regard to protect the jobs of tanker drivers and owners, he argued: “There are rules for that and I don’t think one company should take the responsibility to interpret and operationalise what the regulators should do. We need the regulators to interpret very efficiently.
“Right now, we are struggling to feed family and get things going and suddenly we are going to be out of business from August. It is going to take us transporters, many retail outlets owners and marketers out of business and that will affect all the jobs that have been created by these operators in this sub-sector.
“We don’t want one strong man but many strong men. We hope that the industry leaders would be able to get everybody together on the same table to address issues so that everybody will be at peace. Yes, it is competition but competition of what size? Is it a competition of one winner takes all? It should be a competition of everybody winning and Nigerians winning on the ultimate term.
“We are not sitting down. PETROAN is also gathering momentum to be able to look for alternatives on how we can source our product for our teeming members. There is a PIA that has been passed and is functioning that rules the industry. Pricing is regulated by Article 207. Licensing also has its procedures and processes.
“Everybody has to have a license to operate in a certain way. So, if you have a license to operate as a refinery, please refine and let those who have licensing and operational permits also do so. Let those who have operational permits and requirements for logistics do so. And those of us who have operational approvals for retail outlets should also do our bits and do it effectively.”