Festus Osifo, President, Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN has revealed why independent petroleum marketers cannot buy directly from the Dangote Refinery.
According to the PENGASSAN president, it will be unprofitable for the marketers to buy from the refinery and make a profit margin when they sell to the consumers.
Osifo, who is also the President, Trade Union Congress, TUC, spoke amidst the controversy surrounding the decision of the Nigerian National Petroleum Company Limited, NNPCL to be the off-taker of the petrol produced from the petro-chemical refinery.
On September 20, the Dangote Refinery said the first load of petrol from the refinery was being loaded by the NNPCL which will then sell directly to the marketers.
The marketers under the aegis of the IPMAN have however kicked against such arrangement describing it as clandestine. Their argument is that NNPCL should not be the middle-man since the sector has been fully deregulated.
As an important stakeholders in the oil and gas sector, they should be allowed to purchase the product directly from Dangote, and sell at market determined price, they insist.
Speaking on the issue yesterday, Usifo said NNPLC decided to be the off-taker of the product from Dangote in other to make it relatively cheap for consumers.
He explained that while the NNPC may purchase petrol at N950, it sells it to independent marketers for around N700.
Recall that the NNPLC had on September 20 disclosed that petrol will be sold for at least N950 per litre in the country.
The price of the product also known as PMS has risen to as high as N1,200 per litre in some parts of country in the last few days, according to checks by the magazine.
