The Depot and Petroleum Products Marketing Association of Nigeria (DAPPMAN) says it was in full support of the Tinubu administration decision on the removal of subsidy on Premium Motor Spirit (PMS), popularly called petrol.
But the Association said its members want the government to remove all bottlenecks on their path to ensure a smooth operation and distribution of petroleum products in the country.
Speaking during her visit to the President, Bola Tinubu, and his Vice, Kashim Shettima, in Abuja on Wednesday, the Chairman of DAPPMAN, Winifred Akpani, said members of the group, who cut across the entire downstream sector of the petroleum industry, were in support of the move to deregulate the operations of the industry.
Describing the move as an audacious step, Akpani said although a very tough decision, they believed it was the beginning of a greater Nigeria.
“The ensuing challenges will be enormous for all, including the operators applauding this move. But we are determined to work with the government to ensure this all-important decision succeeds.
“We believe the government is putting together interventions to cushion the effects on the populace in the light of the expected rise in the cost of living,” Akpani said.
While pledging to support the government efforts to proffer solutions to the challenges, the DAPPMAN Chair said the Association was aware of the perennial issue of inadequate understanding and perceived opaqueness in the reallocation of the savings withdrawn as benefits from subsidy removal.
The group offered to help intensify public enlightenment on the issue and ensure the marketers’ costs were efficiently managed to deliver value in competitive retail pump prices in the country.
Besides, Akpani said the Association would also volunteer to join the government team in working out the various interventions to cushion the negative impact of the subsidy removal policy on the people.
While pledging to ensure a healthy and robust petroleum industry, by ensuring adequate supply of petroleum products at highly competitive prices, Akpani said DAPPMAN would not want to see fellow Nigerians suffer in fuel queues, as they are determined to ensure efficiency in products sourcing and delivery.
Under the deregulation policy in the downstream sector of the petroleum industry, she said the forces of demand and supply would promote competition and efficiency, while preventing price gouging.
Deregulation, she noted, would attract more investments in infrastructure and the employment of several Nigerian youths.
To achieve the target of establishing a steady and strong downstream sector of the petroleum industry, Akpani stressed the need for full support to the government by all stakeholders.
She commended Tinubu for the directive to the Central Bank of Nigeria (CBN) to harmonise the official and black market rates into a single foreign exchange rate, saying this was critical to the effort to eliminate arbitrage and the provision of a level playing field in the petroleum industry in particular and the country’s economy in general.
Again, she said this would ensure the highest quality of petroleum products were being supplied at the best prices in the country.
To ensure a smooth and hitch-free operations by the marketers, Akpani asked the government to order that all dues and levies imposed by its agencies, particularly those by the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) be cut down to their barest minimum and made payable in Naira.
DAPPMAN explained that this would drastically reduce the pressure on marketers foreign exchange rate and the country’s foreign reserves, while keeping in check the retail pump price of petrol in the country.
Also, the Association asked the government to ensure that all charges and taxes stipulated in the Petroleum Industry Act (PIA) 2021, which are imposed by the downstream industry regulatory authority, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), be suspended until the petroleum market has stabilised.
In addition, the Association demanded the government to order the NNPCL to scrap the 2.5 percent security deposit requested for all purchases of petroleum products, since their members have never overloaded their allocations.
Again, the Association called for the revision of the clause in Section 318 (9) in the PIA restricting importation of petroleum products to only companies with active local refining licenses as well as those with proven track record of international crude oil marketing and petroleum products trading.
The Association acknowledged the importance of stability in the petroleum industry, saying it would ultimately usher in the much-desired energy transition, adding that it’s members are anticipating less dependence on fossil fuels, which would bring about more investments and faster development in gas and gas and electricity as alternative sources of energy.
