LAGOS, Nigeria (VOICE OF NAIJA) – The Independent Petroleum Marketers Association of Nigeria (IPMAN), has called on the Federal Government to intervene in the claims made by Dangote Group for not providing crude oil for its refinery.
The downstream operators made this know on Monday why criticising the International Oil Companies operating in Nigeria for its crude trade, describing it as “anti-country practice.”
The National President, IPMAN, Abubakar Maigandi, reacting to 3.5 billion litres of diesel and aviation fuel exported by Dangote Refinery and the accusation of some marketers importing dirty fuels into the country.
IPMAN spokesperson said that they are several factors on why marketers now prefer to buy cheaper imported refined petroleum products rather than patronising Dangote refinery.
He further explained that the reason marketers were shunning the diesel and aviation fuel produced by the Dangote refinery was that the products were higher in cost.
According to Maigandi, the refusal of the President of the Dangote Group, Aliko Dangote, to collaborate with IPMAN is another factor affecting the $20bn refinery.
But the IPMAN leader, while speaking with one of our correspondents on Monday, blamed Dangote for the importation of diesel by operators, saying his (Dangote) diesel is more expensive.
Maigandi disclosed that Dangote did not heed the advice of marketers that the current price of diesel and aviation fuel be reduced to beat competitors in the market.
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The IPMAN boss maintained that nobody would be encouraged to import the so-called dirty fuel if the products from Dangote refinery were cheaper.
“The major challenge is the cost of the Dangote diesel. We are looking for a reduction from him. He should bring it to a little bit lower rate.
“The fact that people bring in diesel from other countries into Nigeria is his fault. It is because of his price. You know I said earlier that he should bring his price down so that he would discourage importation by the other marketers. His price is higher. If it is lower, why should people buy outside?” the marketer stated.
The Dangote refinery official had accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.
Meanwhile, the IPMAN president stated that Dangote refused to sign a deal with the independent petroleum marketers for the distribution of its products.
Despite efforts to enter into a business agreement with him, Maigandi said Dangote held on to multinationals whom he said were sabotaging his efforts.
“Again, we gave him a policy that he should involve independent petroleum marketers in direct purchases from him. Up till now, he didn’t do that.
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“The idea is, immediately you hold independent petroleum marketers, definitely you are the one who is having the market of the country.
“We told him that he should allow independent marketers to start buying fuel directly from him, but he refused. He just holds on to all these multinational companies. These multinational companies will sabotage his efforts because they will tell him that they would buy, but if they buy a little from him, they will go outside to buy another one that is cheaper than his own,” he stated.
Maigandi said Dangote currently sells his refined products through MRS, some depot owners and other major marketers.
“But it is better he sells to us directly because anywhere he takes his product to, independent marketers are buying it there. And when we buy, those selling it in those places will also add their profit margin, making the product a bit higher. He should use independent petroleum marketers to sell his products,” Maigandi advised.
Punch