The efficient implementation of the distribution of petroleum products by Dangote Refinery’s Compressed Natural Gas (CNG) tankers could crash fuel price to about N700 per litre, an industry analyst, Kehinde Ishola, has said.
The refinery had announced that it would deploy 4,000 CNG tankers to enhance the distribution of petroleum products. Ishola told our correspondent that the scheme would enhance the distribution network nationwide of petroleum products and reduce costs.
According to him, the marketers believe that it will also stimulate economic activities, boost agriculture and industrialisation, as it will reduce the cost of transportation. Ishola said because of some arbitrage, many fuel users preferred to buy from stations owned by the depot owners instead of stations of independent marketers.
According to him, the current clash between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) was a payback to some depot owners.
The fuel marketer said: “They work for the independent marketer to come and buy from them. “So they found a way of sidelining us from getting the relevant product from the Nigerian National Petroleum Company Limited (NNPC Ltd). “There are some people who are licensed on a bulk purchase from NNPC.
“They made sure nothing was forthcoming. If you link up with NNPC Ltd before now, you may get your product in 3, 4, 5, 6 months. Before it was that way. “They work towards getting everything to their own depot. I remember vividly when they were getting PFI less than N600 and they were selling it at N930.
“But some of them were even selling at their depot at the rate of N630 per litre. And their stations beside those of the independent marketer, they will be selling products at maybe about N650 in their depot.
“They will claim they are helping the masses and people will be clapping for them and praising them. But the people may not know the details of the nature of the business. “They were making a lot of money but milking independent marketers. “Many of them did a lot of evil in killing our businesses for over 20 years, 15 years ago.”
Speaking further he said: “ Former President Olusegun Obasanjo gave them the opportunity to reduce fuel scarcity, but not to ruin the businesses of independent marketers, but they misused the opportunity and inflicted hardship on independent marketers and the people.
But now the tables have turned.” He said with Dangote Refinery, competition has set in and maintaining the interest and patronage of fuel users is uppermost in the minds of oil marketers, such that no marketer will dream of exploiting fuel consumers through high price or under-dispensing with inaccurate meters.
