Dangote refinery will address supply shortages, price hike – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says the new Dangote refinery will address fuel shortages and price hikes in the country.

Mr. Chinedu Anyaso, Chairman of IPMAN's Enugu Community Depot in charge of Anambra, Ebonyi, and Enugu states, said this in an interview in Awka on Monday.

Supreme reports that the 18.5 billion-dollar Dangote refinery with 650, 000 barrel production capacity was inaugurated by President Muhammadu Buhari on Monday.

Anyaso envisaged initial increase in pump price, but said it would decrease in the long run.

“They will buy locally, refine and sell locally, we will no longer need forex to import product but rather, it will sell refined products and earn us forex.

“It is a welcome development,” he said.

The IPMAN chairman urged the Federal Government to revive its four refineries and optimize their production to support what Dangote would produce and ensure full sufficiency of the products.

He thanked the President Muhammadu Buhari administration for signing the Petroleum Industry Act (PIA), which encouraged private sector investment in the oil and gas industry.

Anyaso cautioned against monopoly, saying it would leave Nigerians worse off if left at the mercy of one supplier.

“We need more players to come; the market is there, so there should be competition, and the Federal Government should ensure a monopoly is not created.

“The PIA that this administration graciously signed encourages private sector involvement; people who have the capacity should be encouraged to follow the Dangote example,” headded.

Anyaso called for the revitalization and operationalization of all moribund depots, including that in Enugu, for easy distribution of petroleum products.

He said this would reduce the challenges of sourcing products and drive down prices.