The Natural Oil and Gas Suppliers Association (NOGASA) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have kicked against plans by Dangote Refinery to supply petroleum products directly to end users across the country without recourse to middlemen.
The plan, the marketers said, will cause a bypass of the supply distribution network and render them jobless.
Members of the two bodies are crying wolf and have expressed fears of job losses should Dangote Refinery go ahead with its plans.
Already, Dangote Refinery has procured over 4,000 trucks for the direct fuel distribution scheme.
Members of NOGASA, who serve as intermediaries between refineries and final consumers, fear that this new distribution model will render their role obsolete and lead to significant job losses.
NOGASA President, Benneth Korie, warned that the move could have severe consequences for the downstream sector as well as cause a destabilization of the existing supply chain and the obvious potential loss of thousands of jobs.
“A lot of jobs are at stake, and we are kicking against this new way of supplying products to end users,” Korie stated.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also weighed in on the issue, advising Dangote to hand over the 4,000 trucks procured for the direct fuel distribution scheme to marketers.
IPMAN Publicity Secretary, Chinedu Ukadike, said this would ensure seamless fuel distribution across the country.
“The scheme will ensure that there is free distribution of petroleum products and the equalisation of prices across the nooks and crannies of the country,” Ukadike said.
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“But we also appeal that these trucks should be given to independent marketers to manage and bring effectiveness into the scheme.”
The direct fuel distribution scheme by Dangote Refinery is scheduled to commence on August 15.
Apart from NOGASA and IPMAN, the National Association of Road Transport Owners (NARTO) is also disturbed, and its members are planning to meet to discuss the matter and take a position.
“I am not going to say anything about it because we are in discussion,” its President, Yusuf Othman, said.
Meanwhile, NOGASA has scheduled July 31 as a meeting date for its members to deliberate on the matter.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROQN) has also expressed concerns over the plan, describing it as a “Greek gift” by Dangote.
PETROAN National President, Billy-Gillis Harry warned that such distribution schemes may only offer temporary relief before ushering in higher prices.
