Petroleum products marketers under the umbrella of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) say they have reached agreement with the Nigerian Midstream-Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.), Dangote Refinery ans other stakeholders in the downstream sector of the petroleum industry on modalities to ensure uninterrupted supply and distribution of petroleum products in the country.
Other groups involved in the agreement aimed at ending the perennial crisis in the sector value chain include Major Energies Marketers Association of Nigeria (MEMAN), Depot And Petroleum Products Marketing Association of Nigeria (DAPPMAN), and Independent Petroleum Marketers Association of Nigeria (IPMAN).
The National headquarters of PETROAN said in a statement in Abuja on Sunday that they were happy with the roles played by the management of NNPC Ltd. under the leadership its Group Chief Executive Officer, under the leadership of Malam Mele Kyari; NMDPRA led by the Authority Chief Executive, Farouk Ahmed, and the President of Dangote Refinery, Alhaji Aliko Dangote, in reaching the agreement.
Also, they commended the leadership of MEMAN, DAPPMAN, PETROAN and IPMAN for reaching a resolution for petroleum products marketing companies to buy all their products from Dangote Refinery.
Specifically, PETROAN resolved, among other things, that Dangote Refinery must guarantee adequate supply of products by selling an average of 28 million litres of premium motor spirit (PMS), popularly called petrol, daily for the next six months to oil marketers for domestic consumption in the Nigerian market.
The National President of PETROAN while addressing news men at PETROAN’s headquarters Abuja expressed optimism that the resolutions will bring succour to the downstream sector and improve the Nigerian economy.
According PETROAN’s national president, Dr Billy Gillis Harry, explained that the new deal was part of a resolution reached by stakeholders on the absorption of domestic petroleum product production by Nigerian Oil Marketing Companies, including the NNPC Ltd.
Dr Harry expressed confidence that the resolution would attract so much benefits to the industry, including stability in petroleum products supply, control of price fluctuations, maintaining transparent communication, addressing conflicts proactively and fostering collaboration among key stakeholders players.
On his part, the National PRO of PETROAN, Dr Joseph Obele said those that signed the resolution, including the industry regulator, the NMDPRA, as well as the NNPCL, Edo Refinery, Dangote Refinery, Waltersmith Refinery, Aradel Refinery, IPMAN and Petroleum Regulatory and Petroleum Products Retail Outlets owners Association of Nigeria.
The spokesperson said the document showed there was adequate stock Aviation Turbine Kerosene and Dual Purpose Keeosine or diesel available from all domestic refineries to be supplied to the NMDPRA for the same period of six months and must be subject to consideration for import as may be required
Dr Obele said it was also agreed that the NMDPRA must establish the basis for allocating import volumes to oil marketing companies on the assumptions of the aggregate of domestic refinery capacity with understanding to cover shortfalls for respective marketers.
The resolution, he pointed out, was to ensure that the domestic refineries would provide fixed quantities and delivery windows, for a period of two months preceding the month of delivery to the customer and the NMDPRA.
The other resolution was for individual oil marketing companies to enter direct commercial agreements with domestic refineries on a willing buyer, willing seller basis.
