The President of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, charged the President Bola Tinubu-led administration and other stakeholders to be wary of Dangote Refinery and its fuel price regime in the coming months, to avoid cannibalization of small businesses in the oil and gas sector.
Gillis-Harry, who stated that though the current administration wants Dangote refinery to start producing on all four valves widely open and wide, expressed that there is a need to be very cautious about the development of the business.
He submitted to an interview with a prominent online newspaper, Daily Post, adding that he is proud of the development as a Nigerian, particularly with 650,000 barrels of crude oil “but I just hope that his pride will not keep me hungry without being in business.”
“Well, we want Dangote refinery to start producing on all four valves. All valves should be open and wide. However, there’s a need to be cautious about the development of the business. 650,000 barrels of crude oil and we’re very proud. As a Nigerian, I’m very proud.
“Because right now, we’re doing our little businesses from importation. We’re doing it. To my knowledge, nobody has brought substandard products except when there was a general product of PMS that came in that of course explanations were given. To my knowledge, none of my members have come to say, Oh, we bought PMS as a company and the rating is low. Of course with our 3P’s solution, we also take measures on the product.
“Believe me, I will not be able to say either yes or no but I think that such a broad-based allegation by Dangote Refinery should be backed with empirical evidence. It shouldn’t be just a one-off allegation because people are importing products. These products are going to be used like Shell and AGIP and different stakeholders in the industry that are using it to be able to further produce crude oil. So I mean, if there is a presentation like that, we should expect the houses also to come out and tell us the whole part of the story. And then of course Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN responded by saying oh, sorry, our members are not bringing it,” he maintained.
Speaking further, PETROAN President noted that it would advise Dangote Refinery to also have stakeholders’ meetings consistently to be able to review the obtainable price in the industry and avoid being monopolistic in its dealings.
“We want a situation where Dangote will consistently work with the rules, let him refine and then let the depots distribute and let the retailers take from the depots and give to the end users, he stated.
While saying there is a need for domestic revaluation of the Oil and Gas industry, he explained that the Dangote Refinery must be able to fix prices at an affordable rate for Nigerians immediately after it commences fuel supply
He said: “The reason is, now why should Dangote buy crude oil in US dollars? We are not printing US dollars in Nigeria. So even though oil is dominated as an international commodity that is predicated on the US dollar, part of the emergency decisions that I should expect to happen is that we are going to produce 2 million barrels of crude oil strictly for our domestic consumption, and we’re going to price it at the Nigerian Naira.
“Of course. That’s why sometimes I bother to ask. How did it get so bad that Dangote Refinery had to import crude oil? Because they will not have told him about the Bonny light because they’re also producing oil there. But they are importing from other countries and storing up. So we need to register the entire system and be transparently honest because for crying out loud, being the poorest man or the richest man in the world, we are all equal.”
Similarly, he touched on the deadlines and missed deadlines for the take-off of the Port Harcourt, Kaduna and Warri refineries, expressing that the government is doing everything possible to get them up and running.
He concluded that PETROAN is working with those who would be given refinery licenses that did not have capacity and partnership, saying they have enough retail outlets to be able to obtain from them enough partnership and guarantee for them to further raise capital to be able to do the work.
