DAPPMAN and MOMAN Advocate for Effective Distribution Cost Management and Fuel Subsidy Removal in Nigeria

The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) have expressed their dedication to mitigating distribution costs and lessening the impact on petrol pump prices. In addition, they urge Nigerians to perceive the removal of fuel subsidy as a crucial stride towards achieving social justice. Both associations laud President Tinubu's stance on this matter and are optimistic that his administration will redirect subsidy funds to bolster essential public goods such as healthcare, infrastructure, and education.

The statement echoes the previous stances of the Nigerian National Petroleum Company Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Both organizations emphasize that there is no reason to be alarmed, urging Nigerians to refrain from panic purchasing and hoarding of petrol.

The statement reads:

“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.”

Distribution Cost Management

DAPPMAN and MOMAN recognize the significance of effectively managing distribution costs to ensure minimal increases in petrol prices. Acknowledging the concerns surrounding potential price hikes, the associations emphasize the need for collaboration with key stakeholders, including road transport owners, to develop strategies that optimize the distribution process. By streamlining operations, improving logistics, and exploring innovative approaches, the associations aim to maintain reasonable fuel prices and enhance accessibility for consumers. 

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.”  

While the removal of fuel subsidies has been a subject of debate, DAPPMAN and MOMAN endorse this decision as a crucial step towards achieving social justice in Nigeria. They emphasize that the subsidy funds, once redirected, can be utilized to bolster critical sectors that directly impact the lives of citizens. The associations believe that investing in healthcare, infrastructure development, and education will have a profound positive effect on the well-being and future prospects of the Nigerian population.

Collaborative Approach

To ensure the effective implementation of the subsidy removal and minimize any adverse effects, both associations stress the importance of collaboration. DAPPMAN and MOMAN express their commitment to working closely with key stakeholders, including government agencies, transport owners, and regulatory bodies. By fostering an inclusive and cooperative environment, they aim to address challenges related to distribution costs, mitigate price fluctuations, and maintain a stable fuel supply chain.

The Depots and Petroleum Products Marketers 

Association of Nigeria (DAPPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) advocate for the effective management of distribution costs while minimizing the impact on petrol pump prices. They view the removal of fuel subsidy as a crucial step towards social justice, expecting that redirected funds will bolster essential public goods. Both associations emphasize collaboration and engagement with relevant stakeholders to ensure a smooth transition and uphold the interests of Nigerian citizens. By working together, they strive to achieve a sustainable and equitable fuel industry that benefits the nation as a whole.