The Depot and Petroleum Products Marketers Association of
Nigeria (DAPPMAN) says no cabal in the midstream and downstream sector, just individuals
with vested interests.
On May 1, Aliko Dangote, president of the Dangote Group,
said he was still fighting cabals for the survival of his $20 billion refinery
— subsequently describing “cabals” as some major oil marketers and traders.
Speaking in an interview with TVC on Friday, Olufemi
Adewole, executive secretary of DAPPMAN, described the use of “cabals” by
Dangote as being “negative” and “subversive”.
“There is no cabal in the midstream and downstream
operations as far as I am concerned, because, going by the English definition
of the word cabal, it’s a negative, subversive thing. There is no cabal, but I
can tell you that we have vested interests,” he said.
“My principals have vested interests in the sector. So if
they have invested over these years, billions of naira, and they have bridged
the gap.
“Even before Dangote, they were there when nobody was there
to bridge the gap and ensure Nigerians get fuel. Definitely, they should have
commensurate returns on their investment.”
‘DANGOTE REFINERY CAN MANIPULATE PRICES DUE TO ITS CAPACITY’
Speaking further, Adewole said Dangote Petroleum Refinery’s
capacity gives it an edge over all other refineries in the country, potentially
allowing it to dictate pricing.
He said monopoly is a danger to DAPPMAN, adding that “we
have been talking and deliberating about it”.
“Right now, we have a refinery, a 650,000 barrel capacity
refinery. This price, volume and capacity alone give the refinery the edge over
all others. It can manipulate prices. It can dictate prices,” Adewole said.
“It can get what it wants. So it’s a clear and present
danger for us, and we would rather not have it that way.
“But the beautiful thing is that we have the regulators, who
have been doing fantastically since they came on board.”
He said regulators are actively monitoring to ensure no
organisation violates the provisions of the Petroleum Industry Act (PIA).
The executive secretary said the act promotes a free market,
enabling multiple players to participate in the system, while measures are in
place to prevent monopolistic practices.
“You will recall that Dangote recently took the Nigerian
Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and a few
other marketers to court,” Adewole said.
“This tells you their (Dangote Refinery) mindset, and what
they were challenging is actually the authority of the regulator, which is
enshrined in the PIA, to release import licenses for marketers to import fuel.
So it gives you a picture into their mindset.”
He said “the fear of monopoly is real,” and marketers are working
with other stakeholders “to ensure this is not realised”.
“We are working with the regulators, encouraging them to do
their work so that this is curtailed,” the executive secretary said.
‘DANGOTE REFINERY CAN NOT MEET ALL LOCAL SUPPLY NEEDS’
Quoting Farouk Ahmed, NMDPRA’s chief executive officer
(CEO), Adewole said Dangote refinery is not meeting up to the “reduced local
consumption volume”.
“So, for now, Dangote refinery cannot meet up. It is we, the
private depot owners, that have been bridging the gap and meeting the needs of
Nigerians,” he said.
The executive secretary added that stopping the importation
of petrol at this stage would be “chaotic” and “dangerous”.
Adewole said a phased strategy would be more practical when
multiple domestic refineries become operational.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com