Group urges NNPCL to buy petrol from Dangote Refinery

Amid speculation that how to make up for the price differential of landing cost, cost price and actual pump price of the Premium Motor Spirit (PMS) petrol is delaying the take off of local refineries production, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) yesterday urged the Federal Government to make a way for the Nigerian National Petroleum Company Limited (NNPCL) to buy the product from Dangote Petroleum Refinery Company.
Addressing reporters in Abuja, the association’s President Mr. Benneth Korie said, “It does not mean NNPCL is not a competitor. So what we mean is that if Dangote Refinery cannot sell because of the high price, what it costs them, landing cost and all that, the government can come in and say for you to have a little balance not subsidy, but a little differential so that Nigeria will enjoy it.
To ensure a balanced distribution, the association urged that Dangote’s refined products be made available to a broader range of stakeholders, including NNPC Trading, NNPC Retail, DAPPMAN, MOMAN, IPMAN, PETROAN, and NOGASA.
Korie said this inclusivity will facilitate sustainable and widespread distribution across the country.
He also asked the Federal Government should expedite the commencement of the Port Harcourt refinery slated for September.
The President said this will help alleviate current shortages and ensure that products are distributed among the same stakeholders.
He expressed the association’s support for President Bola Tinubu directive to sell crude oil in Naira.
He urged the refineries to also sell the products in the Nigeria’s currency.
Korie allayed fears about the likelihood of smuggling of the products due to lower prices, stressing security operatives can arrest the situation.
“We hope that our refineries will reciprocate by selling refined products in Naira, thus stabilizing the market.”
“On the issue of smuggling, we need to redesign distribution channels to prevent illegal exportation of petroleum products. Strengthening our security agencies, especially at border points, with necessary equipment and support is crucial.
He advised the government to address inflation issues by prioritizing agriculture.
Korie said to address public apprehension over rising costs, the government should make farming more attractive and profitable by subsidizing agricultural inputs and equipment.
He said reliance on unsustainable palliatives is not the solution but increasing budget allocations for agriculture and encouraging cluster farming will significantly boost food production.
He also asked the government to deploy extension workers to educate farmers on modern techniques such as irrigation and fumigation, etc.
Continuing, he said “It is necessary to reiterate that improving our transportation network is also very essential. Indeed, expanding and revamping railways, especially for bulk cargo, will enhance logistics, and adequate attention must be given to road networks, with prompt payments to contractors and prioritization of emergency repairs.
“Regarding the prices of Automated Gas Oil (AGO), with Dangote’s refinery production and crude oil transactions in Naira, we expect a reduction in AGO prices.
“NNPC should leverage its shares in Dangote’s refinery to drive down these costs, which will, in turn, lower transportation expenses and reduce market prices.
“Finally, I would like to acknowledge the efforts of the NMDPRA in regulating the industry.
“We urge them to ensure that products are available to marketers at fair prices to prevent profiteering.
Government should also facilitate the availability of CNG kits and conversion centers; Marketers are ready to offer their stations for these purposes, which will reduce reliance on PMS and AGO.”

Source: thenationonlineng.com

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