Capt. Emmanuel Iheanacho, a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has said that depot owners in Nigeria have indispensable roles in fuel supply chain, particularly in the context of the recent delivery of Dangote Premium Motor Spirit (PMS) or petrol.
Iheanacho, who is also the Chairman of Integrated Oil and Gas Ltd made this clarification on Wednesday in a reaction to a statement issued by the Chairman of First Bank Nigeria (FBN) Holdings, Mr. Femi Otedola, who suggested that Nigerian depot owners should dismantle their facilities and sell them as scrap, given the arrival of Dangote petrol.
He said that petroleum products storage depots are a vital component of the fuel supply chain and that they complement primary fuel sources.
He stressed that without these depots, other elements in the supply chain would struggle to deliver fuel to consumers.
Iheanacho said: “While there might be competitive elements in the market, collaboration and cooperation are essential for ensuring a stable fuel supply in Nigeria.
“Petroleum depots are not a replacement for primary fuel sources but are crucial for storing and distributing products to meet demand.”
He added that depots play an important role in distribution, particularly given Nigeria’s dispersed infrastructure.
Iheanacho also noted that while private depots may compete with the Nigerian National Petroleum Company Limited. (NNPC Ltd) in terms of storage and distribution, they are not necessarily in direct competition with the NNPC Ltd or the Dangote Refinery and Petrolchemical.
“Instead, these depots often work in conjunction with both to support a reliable fuel supply chain.
“Private depots may compete with petroleum importers for market share by offering essential storage and distribution services. Ultimately, competition aims to balance market prices.
“However, depots are key partners in supporting the entire supply chain, including NNPC Ltd and Dangote,” he added.
Iheanacho stated that depots provide critical storage and distribution support not only for NNPC Ltd and Dangote but also for petroleum importers, ensuring a more efficient and reliable fuel supply network.
Credit: New Telegraph Newspaper
