By joshua 
Dangote/DAPPMAN Face off, Pay back for some depot owners– Analyst
Ayo Ola
An industry analyst, Kehinde Ishola, has said that the current face-off involving the management of Dangote refinery; the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is a pay back to some depot owners.
He alleged that some depot owners suffocated businesses of independent marketers by selling petroleum products at exorbitant rates to independent marketers and later sold at their own stations at less price.
He stated that because of some arbitrage many fuel users preferred to buy from stations owned by the depot owners instead of stations of independent marketers.
In an interview with journalists on Friday, he described the initiative by the Dangote Refinery to use tankers powered by Compressed Natural Gas (CNG) to distribute petroleum products nationwide as a laudable one.
Recall that the management of Dangote refinery had announced that it was going to deploy 4,000 Compressed Natural Gas (CNG) tankers to enhance the distribution network nationwide of petroleum products.
The development led to a face-off between the NUPENG, their sympathetic labour unions; the DAPPMAN and the management of Dangote Refinery.
Ishola opined that the scheme will enhance the distribution network nationwide of petroleum products, and reduce cost.
He stated that many independent marketers have registered for the scheme and were hopeful that it will be more impactful to the masses as they hope that it will reduce pump price.
According to him, oil marketers believe that it will also stimulate economic activities, boost agriculture and industrialization as it will reduce the cost of transportation.
Ishola alleged that some depot marketers would be uncomfortable with the scheme as according to him, it will reduce the high profit they allegedly make.
Ishola who also is a marketer said, “They work for the independent marketer to come and buy from them. So they found a way of sidelining us from getting the relevant product from the Nigerian National Petroleum Company Limited (NNPC Ltd). There are some people that are licensed on a bulk purchase from NNPC. They made sure nothing was forthcoming. If you link up with NNPC Ltd before now, you may get your product in 3, 4, 5, 6 months. Before it was in that way.
“They work towards getting everything to their own depot. I remember vividly when they were getting PFI less than N600 and they were selling fuel N930 per litre to us. But some of them were even selling at their depot at the rate of N630 per litre. And their stations beside those of the independent marketer, they were selling products at about N650 in their depot. They sold products to independent marketers at N930, but they sold at their stations at N650. They were the ones who showed like they were the best in the world. They claimed they were helping the masses and people clapped for them and praised them. But the people did not know the details of the nature of the business. These are the products that come from NNPC below N600 or at N615 at times. So this same product will be the one they sold to us at N930 in their Apapa private depot. They made a lot of money and milked independent marketers.
“Many of them did a lot of evil in killing our businesses. For over 20 and 15 years ago we were just struggling with banks and struggling with customers. So, now it is the time for them to know the tough side of business. They should stop making noise. Ex-President Olusegun Obasanjo gave them opportunity so as to reduce fuel scarcity but not to ruin the businesses of independent marketers but they misused the opportunity and inflicted hardship on independent marketers and the people. But now the table has turned.”
He said that the efficient implementation of distribution of petroleum products by Dangote Refinery’s Compressed Natural Gas (CNG) tankers could crash fuel price to about N700 per litre
He stated that with the activities of Dangote refinery, competition has set in and maintaining the interest and patronage of fuel users is uppermost in the minds of oil marketers such that no marketers will dream of exploiting fuel consumers through high price or under-dispensing with inaccurate meters.
According to him, regulatory agencies are being more efficient in their discharge of their duties and had been ensuring that Nigerians were not short-changed.
He appealed to the regulatory agencies to continue in that zeal or even perform better for the overall interest of the nation.