Mkpoikana Udoma
Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has warned that the operations of Dangote Refinery’s compressed natural gas, CNG, trucks are creating severe disruptions across the downstream oil sector, with consequences ranging from worsening Lagos traffic to looming bankruptcies among independent marketers.
In a 14-day review released by the Association, PETROAN highlighted 10 major impacts of Dangote’s CNG truck operations, cautioning against what it described as a premature assumption that the refinery is the “messiah” of Nigeria’s petroleum downstream sector.
“Thousands of CNG trucks deployed by Dangote Refinery have worsened Lagos traffic congestion, leading to increased travel times, decreased productivity, and higher logistics costs,” PETROAN’s National Public Relations Officer, Dr. Joseph Obele, said in the statement.
The association also accused the refinery of refusing to sell in Naira, despite the government’s Naira-for-crude initiative.
According to PETROAN, “Dangote Refinery’s decision to sell in dollars is profit-driven, contradicts the Naira-for-crude campaign, and may undermine government efforts to stabilize the Naira.”
On market competition, PETROAN alleged that Dangote’s pricing strategy was stifling non-Dangote filling stations.
“Stations selling non-Dangote products experienced poor sales due to a N20 price difference. This makes it difficult for other outlets to compete, with many already retrenching workers and putting stations up for sale,” the statement read.
The association further warned of potential monopolistic tendencies. “We caution against viewing Dangote Refinery as a savior. There is a looming risk of monopoly, which could stifle competition, innovation, and consumer choice,” Obele said.
Other findings in the review pointed to job losses at private depots and retail outlets, signs of bankruptcy among marketers and truck owners, and increased pressure on the foreign exchange market due to dollar-denominated sales.
On the lack of engagement, PETROAN faulted Dangote Refinery for what it described as a failure to carry stakeholders along. “This lack of stakeholder engagement may lead to misunderstandings, mistrust, and strained relationships,” it warned.
The group issued several recommendations, urging the refinery to reconsider sales in Naira, collaborate with PETROAN on inventory management to prevent stockouts, and engage stakeholders for “mutually beneficial solutions.”
“Government must also monitor to ensure fair competition, support affected marketers, and implement the Naira-for-crude policy fully. In addition, government-owned refineries should be repaired and handed over to competent private entities for efficiency,” Obele added.
PETROAN maintained that without urgent interventions, Dangote’s CNG truck operations could trigger widespread economic dislocations in the petroleum downstream sector.
This article was originally posted at sweetcrudereports.com
Be the first to comment