… warns depots absence in value-chain will cripple fuel supply
… insists petroleum products depot owners crucial in Dangote petrol delivery
Oredola Adeola
Capt. Emmanuel Iheanacho, Chairman of Integrated Oil and Gas Ltd. has voiced strong opposition to recent comments made by Femi Otedola’s suggestion to dismantle petroleum storage depots in light of Dangote’s PMS production, warning that these depots are essential to the fuel supply chain and their removal would cripple the delivery of fuel to consumers.
Iheanacho who is also a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) made the call on Wednesday emphasising that the indispensable role of depot owners in Nigeria’s fuel supply chain, particularly in the context of the recent delivery of Dangote Premium Motor Spirit (petrol).
He made the clarification in a reaction to a statement made by Mr Femi Otedola, billionaire and Chairman of FBN Holdings, who suggested to the depot owners in Nigeria, including members of the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria, and other independent petroleum marketers, to prepare for a significant shift in the industry.
According to the Chairman of Integrated Oil and Gas Ltd., the petroleum products storage depots are a vital component of the fuel supply chain, complementing primary fuel sources.
He further stressed that without these depots, other elements in the supply chain would struggle to deliver fuel to consumers.
“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,” Iheanacho said.
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 Corporation Ltd. (NNPC) in terms of storage and distribution, they are not necessarily in direct competition with the NNPC or the Dangote Refinery.
“Instead, these depots often work in conjunction with 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 and Dangote,” he added.
Iheanacho concluded that depots provide critical storage and distribution support not only for NNPC and Dangote but also for petroleum importers, ensuring a more efficient and reliable fuel supply network.
