Marketers Set to Engage Dangote on Fuel Distribution Plan as Depo Owners Announce New Price

• MEMAN's Executive Secretary, Clement Isong, stated that the association will engage with Dangote Petroleum Refinery to better understand its plan to distribute fuel
• He emphasised the need for discussions with stakeholders and regulators to clarify the impact of the initiative, particularly regarding pricing and policy.
• Isong also supported Dangote's use of CNG-powered trucks for fuel distribution, acknowledging the government's CNG policy but highlighting the need for infrastructure development

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

To properly comprehend the Dangote Petroleum Refinery's intention to distribute directly to filling stations across the country, members of the Major Energy Marketers Association of Nigeria (MEMAN) say they will consult with the company.

This was stated by Clement Isong, MEMAN's Executive Secretary, at a webinar the group hosted on Thursday,June 19th.

As they take the time to understand the new plan from the Dangote refinery, Isong mentioned that the marketers will also engage with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders.

“At this point, we are watching the market, trying to understand it. We have read it in the news. We need to understand exactly where it impacts and what it impacts before we can have clarity on how far it will go in terms of impact.

“And that requires a lot of discussion—discussion with Dangote himself, discussion with the authorities, and discussion with other stakeholders. At some point, we shall engage and do what is necessary to protect the market, should we have to do so. But for now, we are trying to understand exactly what this initiative is and how it will impact the market.

“It would be irresponsible of us to say anything before being clear about what it means. We are not clear, for instance, whether it means that there is an equalisation policy, or whether it means the same price everywhere in the country—we don’t know. Until we have clarity about exactly what the initiative is, we cannot engage,” he said.

The Punch reported that despite the lack of adequate infrastructure, Isong said Dangote's idea to distribute fuel using trucks powered by compressed natural gas (CNG) was a positive step.

Regarding claims of dominance and anticompetitive behaviour in the industry, Isong clarified that the regulators' responsibility is to continuously assess what constitutes innovation, what is ultimately beneficial to the consumer, and where the risk of dominance starts to pose a threat.

Dangote, depot owners announce new petrol price

Legit.ng reported that the Dangote Refinery and owners of petroleum product depots have raised the ex-depot prices of Premium Motor Spirit (PMS).

This occurred amid the surge in global oil prices due to the Israel-Iran conflict, which reached its fifth day on Tuesday, June 17.

As of Monday, the price of gasoline at Dangote Refinery increased from N825 to N840, Legit.ng can confirm.

Source: Legit.ng