The Major Energies Marketers Association of Nigeria (MEMAN), has said it did not negotiate with the management of Dangote Refinery and Petrochemicals for supplies.
Chairman, MEMAN, Huub Stokman, explained that MEMAN just talked to Dangote refinery but did not negotiate with the refinery on supplies.
He stated that the association had individual members who do their own supply.
Stokman, who also is the Managing Director of NNPC Retail, expressed optimism that the moment the refineries go on stream in Nigeria, the whole infrastructure of the country will change.
He spoke on Monday during a webinar on “Optimising the Nigerian Oil and Gas Industry,” organized by MEMAN.
He said: “MEMAN just talked to Dangote refinery but does not negotiate as such. We have individual members that do their own supply. In that sense, you can not say that MEMAN is doing negotiations with Dangote in that respect.
“There are already depots in the market that hardly do any business. Without even refineries, being functional or not, there are really many depots that do not own their key. In any industry, inefficiency will always lose it from efficiency.”
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) urged the management of the Dangote Refinery to sell petroleum products, including petrol, to all interested and capable marketers on a willing buyer, willing seller basis.
DAPPMAN’s representative, Dr. Gabriel Ogbechie, who also is Group Managing Director, Rainoil Limited called for level playing fields for the Nigerian National Petroleum Company Limited and all other interested and capable marketers.
He said: “At a time like this, the Dangote refinery is about pushing petrol into the market, the word is still out there whether they will still sell exclusively to NNPC Ltd who will now on-sell to the marketers or whether Dangote refinery will be able to sell both to NNPC and to any marketer who is ready to buy from them.
“From an industry perspective, we look forward to a level playing field where the refinery should be able to sell petroleum products to any marketer who is willing to buy more on a willing buyer, willing seller basis.
“But for that to happen, marketers should also be able to sell at full recovery. In other words, people should be able to fix their own prices.
“For the entire downstream players, for years now, we have clamoured for full deregulation where every player in the market will play to the maximum of their capacity. We can see the industry moving seriously in that direction.
“As at today, unfortunately, NNPC stations are still selling fuel at about N855 per litre. That in a way is below where the market should actually be.”
Vice Chairperson, The Crude Oil Refinery-owners Association of Nigeria (CORAN), Mrs. Dolapo Okulaja-Kotun, alleged that indigenous refiners were being denied sufficient feed stocks for their refineries.
Okulaja-Kotun, who also is Executive Director Operations, IkweOnna Refinery Limited, said insecurity, lack of access to funds were some of the other constraints of indigenous refiners.
She said: “The major challenge now is regulatory. While we seek to navigate complex regulatory frameworks and slow policy implementations such as the Petroleum Industry Act (PIA), high cost of our license and another fees that we are paying are other challenges.
“Hoarding is a major challenge. Lack of access to funding for the development of our oil and gas especially modular refineries that really should be uppermost in our minds because they have a low capital expenditure, are quicker and easier to construct and are able to increase capacity easly.so and are also get products into the local market quicker.
“Another challenge that we have been facing both at the operational and development stages is domestic feed supply. NUPRC is not complying with DCOS regulations.
“They have been depriving so many of our refineries, the modular and Dangote refinery, of consistent and much needed stock to refine our maximum capacity. We also know that Nigeria’s oil production now is low and this needs to be increased as security measures increased to safeguard our prime natural resources.
“Even while we are facing supply demands and security issues, naira free fall is another challenge.”
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