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The Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter has commended the planned direct distribution of Premium Motor Spirits (PMS) by Dangote Petroleum Refinery to address long standing limitations in the downstream industry.
Tekena Ikpaki, the Chairman of IPMAN, made that remark while speaking to the News Agency of Nigeria (NAN) in Port Harcourt, Rivers State on Wednesday.
NAN recalls that Dangote Petroleum Refinery in a recent statement announced that it had procured 4,000 brand-new Compressed Natural Gas-powered trucks to boost its fuel supply across the country.
The new supply model, which seeks to eliminate cost on logistics, was part of the company’s commitment to enhancing energy efficiency and economic development.
Ikpaki noted that the planned PMS strategic distribution programme by the refinery was slated to commence on August 15.
According to him, when implemented, the distribution would effectively tackle inconsistent supply of petroleum products, high transportation costs, infrastructural bottlenecks, and fluctuating market prices.
The chairman, however, called for continued regulatory oversight so as to maintain a level playing field that would accommodate all marketers irrespective of size.
He noted that the supply bottlenecks, which had adversely limited the ability to serve the end users efficiently and sustainably, would become a thing of the past with the new distribution strategy.
Ikpaki said: “We believe that such a multi-source supply model is essential to building a robust, competitive, and fair petroleum distribution ecosystem.
“More supply options mean greater flexibility for marketers, better pricing mechanisms, and, ultimately, more stability for Nigerian consumers at the pump.”
Commending the initiative, Ikpaki also noted that the programme, when fully implemented, would stand as a testament to an effective public-private partnership and good industrial leadership.
Also speaking, Chijioke Odimbu, a Shell Petroleum Development Corporation (SPDC) retiree, commended the refinery for its efforts to improve the PMS distribution.
According to him, with 4,000 CNG trucks, the bottleneck in distribution will be a thing of the past since it will be distributed all over Nigeria which will bring down the cost of the product.
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Odimbu observed that the high cost of the PMS was due to transportation costs but added that the refinery must be sure to produce enough fuel so that the effort would not be hampered.
He added: “Even when you have the 4,000 trucks and you don’t have enough PMS to distribute, the trucks will still be useless.
“So, the procurement of the trucks is a very viable idea, but availability of the product is a very important one to consider.”
In his remarks, Charles Ndudi, a bus driver in Port Harcourt, said he was looking forward to the implementation of the planned distribution project.
According to Ndudi, if logistics cost is subtracted from the overhead on the product, then the fuel price will definitely be reduced, adding that transportation and living standard will become less burdensome if the planned is achieved
Imelda James, a foodstuffs trader, also commended the initiative, saying that direct supply would lower the petrol prices and positively impact the cost of flood and transportation.
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