Article Summary
- The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) have said they will work to manage distribution costs to minimize the impact on petrol pump prices.
- The associations also urged Nigerians to see the fuel subsidy removal as a step toward social justice.
- Both associations see President Tinubu’s statement as the right thing to do.
- Both associations also believe the Tinubu administration will redirect subsidy funds to boost essential public goods like healthcare, infrastructure, and education.
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) have come together to address concerns about petrol distribution costs and plan to mitigate the impact on pump prices.
In a joint statement on Tuesday, May 30, both associations emphasized their commitment to collaborating with key stakeholders, including road transport owners, to effectively manage distribution costs and minimize potential increases in petrol prices.
They also urged Nigerians to view the removal of fuel subsidy as a significant step toward achieving social justice.
In the statement, both associations said they understand the concerns about potential price increases but that they expect marketers to maintain reasonable pricing as the NNPCL is still the sole supplier of petrol in the country. They also said:
- “We anticipate minimal changes regarding distribution costs, considering the cost of the product constitutes 80% of the pump price. We pledge in collaboration with the Nigerian Association of Road Transport Owners (NARTO) and other stakeholders to manage these distribution costs diligently to minimize their impact on the pump price.”
President Tinubu is on track
Both associations hailed the move by President Tinubu to end fuel subsidy payments as a courageous and pragmatic shift in Nigeria’s economic trajectory. According to the statement, both associations applaud and endorse President Tinubu for his declaration of the end of the petrol subsidy regime.
In the statement, both associations reiterate the earlier positions of the Nigerian National Petroleum Company Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), that there is no cause for alarm and Nigerians should avoid panic buying and stockpiling of petrol.
According to the associations, stockpiling creates artificial scarcity and also endangers lives. The statement read:
- “The decision to phase out this fuel subsidy regime is not merely a fiscal reform; it is a significant stride toward social justice. We are heartened that the administration plans to redirect these substantial funds towards essential public goods such as infrastructure, education, and healthcare.
- “These investments symbolize our shared future promising considerable, long-term benefits for all Nigerians.”
What you should know
Both associations promised to maintain an open dialogue with the government to help cushion the impact of fuel subsidy removal on the populace. They also urged suppliers to keep supplying petrol to legitimate marketers.
According to the statement, both associations eagerly await the beginning of operations at the Dangote Refinery. This is because the Dangote Refinery will help diversify the supply of petroleum products and enhance market competition.
