According to IPMAN, the Dangote Refinery is expected to result in an "initial rise in fuel prices."
- Posted on May 23, 2023
- By STEPHEN ADEBAYO
According to Mr. Chinedu Anyaso, Chairman of the Enugu Community depot of Nigeria's Independent Petroleum Marketers Association of Nigeria (IPMAN), the inauguration of the Dangote refinery is poised to tackle Nigeria's fuel importation and scarcity challenges. He shared this information during a gathering in Awka on Monday.
Yesterday marked the official commissioning of the Dangote Refinery, as announced by the founder of the Dangote Group, Aliko Dangote. Dangote expressed that the refinery would soon start rolling out its products, with the commencement expected next month.
Positive Development: Addressing Fuel Shortages and Price Hikes in Nigeria
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has hailed the completion of the Dangote refinery as a much-needed breakthrough for Nigeria's energy industry. This significant project, with a production capacity of 650,000 barrels, is expected to effectively tackle the persistent issues of fuel shortages and price fluctuations in the country.
Acknowledging the substantial investment of over $18 billion required to bring the refinery to fruition, IPMAN anticipates that there may be an initial increase in pump prices. However, the association emphasizes that in the long run, the Dangote refinery will bring about price stability and a decrease in fuel costs, benefiting both consumers and the overall economy. This welcome development holds the promise of a more reliable and affordable energy supply for Nigeria.
“They will buy locally, refine and sell locally, we will no longer need forex to import products but rather, it will sell refined products and earn us forex.
“It is a welcome development,” he said.
The chairman of IPMAN passionately urged the Federal Government to breathe new life into the country's four refineries and optimize their production capabilities. This, in turn, would provide essential support to Dangote's production and ensure a comprehensive sufficiency of petroleum products. The chairman praised President Muhammadu Buhari's administration for its foresight in signing the Petroleum Industry Act (PIA), which has been instrumental in encouraging private sector investments within the oil and gas industry.
In a notable cautionary note, UPMAN raised concerns about the potential pitfalls of a monopolistic scenario. It stressed the importance of avoiding a situation where Nigerians would be at the mercy of a single supplier. Such a predicament, if allowed to transpire, could have detrimental consequences for the Nigerian populace, leaving them in a worse-off condition.
“We need more players to come, the market is there, so there should be competition, the Federal Government should ensure a monopoly is not created.”
“The PIA which this administration graciously signed encourages private sector involvement, people who have the capacity should be encouraged to follow the Dangote example.”
IPMAN further advocated for the refurbishment of all inactive depots, including the one in Enugu, with the aim of facilitating the smooth distribution of petroleum products. Such renovations would not only alleviate the difficulties in sourcing these products but also contribute to a reduction in prices, ultimately benefiting consumers.
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