The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticized the Dangote Petroleum Refinery for selling petrol at N990 per litre, claiming it’s unfair given the support the refinery received when it was built, especially regarding foreign exchange.
PETROAN pointed out that the cost of imported petrol is actually cheaper, noting that as of October 31, 2024, the cost to bring in petrol was N978 per litre. Recently, the Dangote refinery accused PETROAN and another group of planning to import low-quality fuel into Nigeria.
In response, PETROAN’s spokesperson, Joseph Obele, stated that if they receive permission to import petrol, they would sell it for much less than the current prices in Nigeria. They have created a new division, PETROL, to help with this.
PETROAN believes that having more competition in the market is beneficial for consumers, as it can lead to better pricing. They criticized Dangote’s claims about them intending to import inferior products, calling it a tactic to maintain a monopoly in the market. They also mentioned that they were not comparing petrol prices until Dangote revealed theirs.
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Obele argued that the price set by Dangote should reflect production costs and a reasonable profit margin, rather than comparison to international prices, especially since the company received favorable terms during its construction. He pointed out that production costs vary between countries, which affects prices.
PETROAN praised President Bola Tinubu for his efforts to improve the country’s refineries and suggested that the government should privatize the Port Harcourt and Warri refineries to make them more competitive.
Obele emphasized the importance of preventing monopolies in the petroleum sector and said that the market should be structured so that customers have options at reasonable prices. He assured that PETROAN is ready to promote competition to bring down petrol prices.
In a related response, Terlumun James, National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), denied claims about blending low-quality fuel and encouraged unity among stakeholders to provide affordable energy for Nigerians.
The spokesperson for the Dangote Group mentioned that an international company was renting a facility next to the refinery to blend substandard fuel. Meanwhile, the regulatory authority did not comment on these allegations.
