Dangote’s direct supply plan sparks market uncertainty; Marketers seek clarity

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The Major Energies Marketers Association of Nigeria (MEMAN) has announced plans to engage with the Dangote Petroleum Refinery to gain a deeper understanding of its proposal to supply fuel directly to filling stations nationwide. According to Clement Isong, Executive Secretary of MEMAN, the association is currently monitoring the market and seeking clarity on the initiative’s implications.

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“We are watching the market, trying to understand it. We have read it in the news. We need to understand exactly where it impacts and what it impacts before we can have some clarity as to how far it will go in terms of impact,” Isong stated during a webinar organized by MEMAN.

The association will also engage with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other stakeholders to gain a comprehensive understanding of the plan. Isong emphasized the need for clarity on the initiative’s specifics, including whether it involves an equalization policy or uniform pricing nationwide

Meanwhile, Isong praised Dangote’s plan to distribute fuel using Compressed Natural Gas (CNG)-powered trucks, describing it as a bold move. “CNG is a policy of the government… Bold companies are companies that will take advantage of available opportunities. So, distribution by CNG trucks is one of the available opportunities, so far as you’re able to make it work for you,” he said.

Regarding concerns about dominance and anticompetitive activities, Isong noted that regulators must strike a balance between innovation and market competition. “It is a continuous debate, a continuous engagement that we all have to help them to find the balance, the equilibrium, and what is best for the market,” he added.

MEMAN has consistently advocated for deregulation and open market competition, which it believes will drive innovation and benefit consumers. The association will continue to monitor the situation and engage with stakeholders to ensure a level playing field in the market

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