TheCable

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says the federal government must consider fixing other refineries to avoid over-dependence on the new Dangote Refinery.

Speaking in an interview with NAN on Monday, Chinedu Anyaso, chairman of IPMAN, Enugu community depot in charge of the south-east zone, said the Dangote refinery was a great development.

With the inauguration of the new refinery, Anyaso said he envisages an initial increase in pump price, but added that there would be a decrease in the long run as it would address fuel supply shortage.

“They will buy locally, refine and sell locally, we will no longer need foreign exchange to import products but rather, it will sell refined products and earn us foreign exchange,” he said.

“It is a welcome development.”

Anyaso also said the new refinery would go a long way if the federal government prioritises fixing other refineries to reduce overdependence.

He added that fixing the other four refineries and optimising their production would support what Dangote would produce and also ensure full sufficiency of the products.

According to Anyaso, there is a need to caution against monopoly as it would leave Nigerians worse off if left at the mercy of one supplier.

“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, he added.

“The PIA (Petroleum Industry Act) which this administration graciously signed encourages private sector involvement, people who have the capacity should be encouraged to follow the Dangote example.”

Anyaso, however, thanked President Muhammadu Buhari’s administration for signing the PIA, which encouraged private sector investment in the oil and gas industry.

The IPMAN chairman also called for the revitalisation and operationalisation of all moribund depots including that of Enugu for easy distribution of petroleum products.

This, he believes, would reduce the challenges of sourcing products and drive down prices.

On Monday, President Muhammadu Buhari inaugurated the Dangote Petroleum Refinery.

The facility is built to process 650,000 barrels of oil per day (bpd), on 2,635 hectares of land located in the Ibeju-Lekki area of Lagos. It will also employ “over 100,000 persons”.