Members of the Major Energies Marketers Association of Nigeria say they will discuss with the Dangote Petroleum Refinery to fully understand the implementation of its plan to supply directly to filling stations nationwide.
The Executive Secretary of MEMAN, Clement Isong, stated this during a webinar organised by the association on Thursday.
Isong noted that the marketers would also engage with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders as they took time to understand the new scheme from the Dangote refinery.
“At this point, we are watching the market, trying to understand it. We have read it in the news. We need to understand exactly where it impacts and what it impacts before we can have some clarity as to how far it will go in terms of impact.
“And that requires a lot of discussion; discussion with Dangote himself, discussion with the authorities, discussion with other stakeholders. At some point in time, we shall engage and do what is necessary to protect the market should we have to do so. But for now, we are trying to understand exactly what this initiative is and how it will impact the market.
“It would be irresponsible of us to say anything before being clear as to exactly what it means. We are not clear, for instance, whether it means that there is an equalisation policy, whether it means the same price everywhere in the country, we don’t know. Until we have clarity as to exactly what the initiative is, before we can engage,” he said.
However, Isong noted that Dangote’s plan to distribute fuel with Compressed Natural Gas-powered trucks was a good development, even though there was not enough infrastructure in place.
“CNG is a policy of the government. It’s a policy still in implementation. We do not have enough CNG infrastructure in place. So, a lot of planning has to be done to be able to implement it. Bold companies are companies that will take advantage of available opportunities. So, distribution by CNG trucks is one of the available opportunities, so far as you’re able to make it work for you,” he said.
On allegations of dominance and anticompetitive activities in the sector, Isong explained that it was the job of the regulators to consistently measure what is innovation, what is for the ultimate benefit of the consumer, and where the risk of dominance begins to play a negative role.
“It is a continuous debate, a continuous engagement that we all have to help them to find the balance, the equilibrium, and what is best for the market. But we have consistently asked for deregulation, we’ve consistently asked for open market competition, and we’ve consistently said it would bring innovation. This innovation, that is transportation by CNG, is one that we have identified, and we have encouraged our members to take advantage of,” he added.
On Sunday, the Dangote refinery unveiled plans to start direct distribution of petroleum products to filling stations and other stakeholders across the country. The scheme would commence on August 15 with brand new 4,000 CNG trucks.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.