Independent Petroleum Marketers Association of Nigeria (IPMAN) has cautioned its members to be wary of buying high volume of petroleum products.
The warning, according to IPMAN’s spokesman Chinedu Ukadike, became necessary because of the instability of the petrol market.
With the precaution, he said, the marketers could avoid huge losses from the very frequent price adjustments.
According to him, the Dangote Refinery is loading products from the vessels and any moment soon, it would commence lifting from its gantry.
He noted that loading the product from the gantry would crash the price, claimed that tank farm owners were taking advantage of loading from the vessels to inflate the prices.
Udadike said: “Dangote has not started selling from his gantry. So, that is what affects the market. This has given rise to tank farm members who have products to inflate the prices to be able to meet with the demand of the market. And they are also using this opportunity for profiteering.
“We the independent marketers we are very wary of buying high volume of petroleum products so that the prices will not crash against us.
“Once Dangote starts lifting from its gantry, prices will crash and independent petroleum marketers who bought product high during this period of time will lose a whole chunk of money.
“So, we are advising our members not to buy chunk of products but just get some products that they can use in maintaining their filling stations.”
Dangote Refinery’s Group Chief Branding and Communication Officer Anthony Chiejina, could not be reached last night, when this reporter sent a WhatsApp message to him to confirm whether the refinery has started selling products in dollars.
Last Thursday, the company announced its stoppage of sale of products in naira temporarily since the Nigerian National Petroleum Company Limited (NNPCL) has halted sale of crude oil to the plant in Naira.
A technical sub-committee on crude oil sale in Naira last year announced the commencement of the sale of feedstock in the local currency to the refinery.
The sub- committee is expected to meet with the concerned parties today in Abuja.
Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri said contract of sale of crude oil in Naira between NNPCL and Dangote Refinery was only a six-month pilot scheme.
The refinery said in statement: “We wish to inform you that, Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira.
“This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.”
The message also stressed its plan to resume sale in naira as soon as NNPCL recommences sale of feedstock in naira to the refinery.
“As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira,” Dangote said in a statement.