By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the Federal Government to intervene in Dangote Refinery’s move to supply petroleum products directly to consumers and its effect on current distributors.

NOGASA said the move by the refinery to bypass the traditional distribution could disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising the existing business models of suppliers nationwide.

NOGASA’s President, Benneth Korie, on Thursday in Abuja at its Annual General Meeting, urged the Dangote Refinery to concentrate on refining and selling products to the marketers, who sell to the end users.

Recall that Dangote Refinery recently announced plans to begin direct supply of petroleum products to end users from Aug. 15.

Dangote said that the programme was aimed at eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development.

It said all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery would benefit from this enhanced logistics support.

It said that sectors such as manufacturing, telecommunications, and others would benefit from this initiative through reduced fuel costs, lower production costs, reduced inflation, and foster economic growth.

Korie, however, said the recent plan by the refinery to begin direct distribution of products, with the purchase of 4,000 distribution trucks for nationwide supply, had left the marketers worried in the business.

“So today again, we are pleading for President Bola Tinubu to intervene in this matter by telling Dangote to slow down, and go by the rules of the game. Nobody is against the refinery.

“The Dangote Refinery is doing well by refining products, we urge Dangote to concentrate on the refinery and remove hand from this direct distribution, we are capable to distribute products

“All you need to do is to blend enough products and sell to depot owners and other countries and then we buy and distribute to the end users nationwide to sustain the system and avoid scarcity.”

Korie said the association was eager to maintain stability in the industry and would not want reoccurrence of the experience the marketers had with the Nigerian National Petroleum Company Limited (Ltd.).

He explained that the NNPC Ltd. was refining petroleum products and distributing through its subsidiary, the Pipelines and Products Marketing Company (PPMC) smoothly, but was disrupted immediately it began direct supply to its outlets only.

According to him, as soon as the NNPC Ltd. began concentrating on its retail outlets, the refineries started going down because they are doing a whole lot  including blending, crude sale, and at the same adding filling station to its operations.

He however advised the management of the Dangote refinery to engage the relevant stakeholders in petroleum distribution and marketing constructively and discuss with them towards addressing the issues.

In his remarks, Mr Ugochinyere Ikenga, Chairman, House Committee on Petroleum Resources, Downstream said its goal was to create a situation where everyone would succeed, following the rules set in the Petroleum Industry Act (PIA).

Ikenga, represented by Mr Saba Ahmed, Member, House of Representative said it recognised the inefficiencies in distribution networks, adulteration problem, annoying supply bottlenecks that could lead to shortages, and tough logistical issues of moving products nationwide.

“These aren’t just things we talk about; they are real problems that affect people’s lives and our nation’s economy.

“I want to assure you that the National Assembly is aware of these issues. We are particularly paying attention to Dangote’s recent move into distributing and selling products and how it might affect current distributors.

“This is a big change, and I want to assure you that we are carefully looking into this situation,’’ he said.

Also speaking, Dr Billy Gillis-Harry, the National President, Petroleum Product Retail Outlets Association of Nigeria (PETROAN) raised alarm that job loss and business shutdown loomed in view of Dangote’s forward integration strategy of direct product supply.

“With a production capacity of 650,000 barrels per day, which has now been up to 700,000 barrels, PETROAN simply argues that Dangote refinery should be competing with global refineries, not operating as a distributor in the downstream.

“We, the marketers are more than able to do it, he said,’’ he said.

In his remarks, Gen. Christopher Musa, Chief of Defence Staff urged the association to remain resolute as it discharged its duties of petroleum distribution and marketing smoothly in the country.

Musa, represented by Rear Admiral Jonathan Mamman, Director of Logistics, Defence Headquarters urged the marketers to facilitate expansion of Compressed Natural Gas (CNG) infrastructure and penetration of Liquefied Natural Gas in the country especially in remote places.

Speaking on safety and distribution of products along the coastal areas, he said the armed forces had been doing so much through the Nigerian Navy, which had numerous patrols and coverage of the coastal areas.

“It’s gladdening to say that the International Maritime Bureau in Malaysia and the United Kingdom have delisted Nigeria from one of the countries, red-flagged countries, of piracy and attack on her maritime sectors.

“We have not been having so much security issues, we are open to collaborations, suggestions, and support to the lead agencies protecting the oil and gas infrastructures inland,’’ he said.(NAN)(www.nannews.ng)

Edited by Abiemwenae Moru