Nigerian oil marketers have expressed surprise at the revelation by Chairman of Dangote Refinery, Aliko Dangote, that the refinery has a stockpile of about 500 million litres of petrol in its tanks for sale and upward distribution to retailers.
The billionaire businessman made the revelation on Tuesday during a meeting of the Implementation Committee on Crude Oil and Refined Products Sales in Naira, summoned by President Bola Tinubu at the State House.
“I assured Mr. President, we will be able to supply the market a minimum of 30 million litres per day, and we’ll be ramping up as we go on. So, we’re ready. We’re more than ready.
“What I’m saying is that the retailers should please come forward and load our products.
“I expect either NNPCL or the marketers to stop importing ; they should come and buy our products because we have what they need. And you know, as they move, I will be pumping.
“I don’t know whether you understand what it takes to have 500 million litres inside our tank. It’s costing me money every day.
“And you are talking about 500 million, you know, I mean, we don’t print money. But the issue is that if they come and collect, then you will not see any queues in the filling stations,’ Dangote ,’ said.
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However, in a swift response to the Dangote Chairman’s revelation, a leading oil marketing Chief Executive Officer, averred that if the Refinery has such huge stock of fuel to sell to marketers, the refinery’s potential customers should have been the appropriate party to put in the know first and not The Presidency.
Said the CEO: “It is not just a surprise, but also intriguing, that the management of the Refinery finds it convenient to make the disclosure of huge stock of fuel to the Presidential team, and not to the marketers who are to patronise the refinery.”
”We were further taken aback by the business mogul’s claim of having that much of petrol in stock given that the refinery in its interactions with some of us in the past weeks, was talking of allowing us to buy based on what it will allocate to each marketer. If such huge stock is available, why rationing what marketers can buy .
The oil marketing executive also contended further that the key challenge marketers have with the management of the refinery is the apparent secrecy in which its commercial and marketing activities are shrouded.
“As we have continued to point out, patronising Dangote Refinery, and, indeed, all our local refineries is very appealing and exciting for us. We look forward to it. But we also have not failed to emphasise that the terms of such patronage should be transparent, fair, competitive, and attractive. It can not be achieved by fiat.
A commercial director of an Independent oil marketing firm buttressed the position of the major marketing executive by submitting that the management of the Dangote Refinery has kept so many vital commercial information close to its chest to the dismay of marketers. “It is not just enough to be calling on the authorities to stop marketers from importing products, and a subtle but persistent campaign to project the marketers as an unpatriotic group who are only after their selfish interests will not stick. The refinery should be transparent by disclosing its commercial terms publicly. If the terms are more favourable than resorting to importing, I’m sure not even NNPCL will consider the importing option, let alone issuing licences to marketers to bring in products. Dangote Refinery management should let us know the terms and requirements and price template for picking the touted 500 million litre stock, and we will take off from there.”
The assertion by the Commercial Manager is coming on the heels of the revelation by the President of IPMAN, Alhaji Abubakar Garima, that Dangote Refinery has not been able to supply products to marketers.
In an interview on Channels TV this morning, Alhaji Abubakar Garima stated that despite the fact that IPMAN members have deposited N40 billion to the Refinery, its members have not been able to lift product
All the marketers contacted confirmed they will be prepared to lift products from Dangote Refinery once the terms are favourable.
‘’Ordinarily if you want marketers to come to you, the process should be fair, transparent, and equitable. No marketer will go source for a product that is available locally, offshore, if the process of procurement is attractive and competitive.”
It will be recalled that marketers have, at different occasions, publicly expressed support and willingness to patronize Dangote Refinery and other local Refineries, while demanding a fair deal and transparent business relationship that will foster a more productive and crisis free downstream sector.
