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Oil marketers in ‘marathon’ meetings over Dangote refinery’s disruption of downstream sector

 


Several oil marketers are holding meetings over the proposed scheme by Dangote Petroleum Refinery to begin the nationwide distribution of diesel and premium motor spirit (PMS), also known as petrol.

 

On June 15, Dangote refinery said it would commence distribution of fuel, including compressed natural gas (CNG), from August 15.

 

When contacted on Monday by TheCable, several oil marketers’ associations said they were meeting to take appropriate steps regarding the development.

 

A source at the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) told TheCable that in the wake of the announcement by the Dangote refinery, the association’s members are “in Marathon meetings right now”.

 

 

Also speaking to TheCable, Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the association has been having meetings since Dangote refinery announced its plans to begin nationwide fuel distribution.

 

“We will be having another press conference later today,” he said.

 

“It’s now that my other sister associations are waking up to realise that this is a big danger that is going to be part of the entire industry.”

 

 

Earlier today, PETROAN said the Dangote refinery’s forward integration adoption could lead to a monopoly in disguise.

 

Further speaking on the potential impact of the move by the refinery, Gillis-Harry said “it’ll wipe out businesses” in the downstream sector.

 

A source at the Independent Petroleum Marketers Association of Nigeria (IPMAN) also confirmed that the association was in a meeting over the announcement by Dangote refinery.

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