Operators in the downstream oil sector, on Monday, called on the Federal Government to intervene by ensuring the provision of crude oil to the Dangote Petroleum Refinery as marketers now prefer to buy cheaper imported refined petroleum products rather than patronising Dangote refinery.
They also slammed the international oil companies operating in Nigeria for selling crude oil to Dangote refinery above the global market prices, describing this as “anti-country practice.”
This came as the Independent Petroleum Marketers Association of Nigeria explained that the reason marketers were shunning the diesel and aviation fuel produced by the Dangote refinery was that the products were higher in cost.
The National President, IPMAN, Abubakar Maigandi, stated this while reacting to claims by the Dangote refinery that it had sold about 3.5 billion litres of refined products to Europe and other countries because some marketers were importing dirty fuels into Nigeria.
According to Maigandi, the refusal of the President of the Dangote Group, Aliko Dangote, to collaborate with IPMAN is another factor affecting the $20bn refinery.
The PUNCH reported on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, had accused international oil companies in Nigeria of plans to frustrate the survival of the new Dangote refinery.
Edwin said the Federal Government issued 25 licences for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.
He, however, noted that more than 3.5 billion litres of Dangote diesel and aviation fuel had been exported to Europe by the refinery in the past few months, being 90 per cent of its output.
But the IPMAN leader, while speaking with one of our correspondents on Monday, blamed Dangote for the importation of diesel by operators, saying his (Dangote) diesel is more expensive.
Maigandi disclosed that Dangote did not heed the advice of marketers that the current price of diesel and aviation fuel be reduced to beat competitors in the market.
The IPMAN boss maintained that nobody would be encouraged to import the so-called dirty fuel if the products from Dangote refinery were cheaper.
“The major challenge is the cost of the Dangote diesel. We are looking for a reduction from him. He should bring it to a little bit lower rate.
“The fact that people bring in diesel from other countries into Nigeria is his fault. It is because of his price. You know I said earlier that he should bring his price down so that he would discourage importation by the other marketers. His price is higher. If it is lower, why should people buy outside?” the marketer stated.
The Dangote refinery official had accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.
The NMDPRA has since stayed mute on this, ignoring several calls for its reaction to this allegation.
Edwin had said the NMDPRA continued to issue import licences at the expense of the nation’s economy and at the cost of the health of Nigerians “who are exposed to carcinogenic products.”
Edwin lamented that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”
He reiterated that as much as a quarter of the petrol and diesel available in West Africa originated from the ports of Amsterdam, Rotterdam, and Antwerp, stressing that these fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.
Edwin said, “The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to indiscriminately grant licenses for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets.
“The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.”
