The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused Dangote Refinery of attempting to suppress competition within the downstream petroleum sector. This allegation follows Dangote Refinery’s assertion that marketers are complaining about its petrol pricing in order to import substandard products at lower costs.
In a statement released on Sunday, Dangote Refinery claimed it sells petrol at N990 per litre for trucks and N960 per litre for ships, arguing that these prices are aligned with international market rates. This declaration came after both PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated they could acquire petrol at prices lower than those offered by Dangote.
In response, Dangote Refinery contended that only substandard products could be imported at prices cheaper than its own. PETROAN, however, has characterized this accusation as a “usual gimmick for maintaining monopoly.” In a statement signed by spokesperson Joseph Obele, the association emphasized that competition is essential for ensuring consumers receive the best value for their money. They warned that a market devoid of competition would lead to exploitative practices.
PETROAN has announced plans in collaboration with foreign refinery partners and financial allies to import high-quality petrol and sell it at prices significantly lower than the current market rates in Nigeria. Their statement outlined that PETROAN has successfully established a Strategic Business Unit called PETROL, aimed at addressing the pricing instability in the downstream sector.
The organization highlighted that aggressive competition in the market brings better value for consumers. They asserted that any attempt to monopolize the market would not only be exploitative but detrimental to consumers. PETROAN criticized the pricing strategy of Dangote Refinery, claiming that their pricing does not reflect genuine production costs but is instead based on international market comparisons.
Furthermore, PETROAN accused Dangote of using strategies to eliminate competitors, alleging that the refinery’s past comments about inferior products from NNPC LTD were aimed at securing a monopoly. They noted that the price for diesel in the Nigerian market increased following Dangote Refinery’s entry, contradicting its claims of providing lower prices.
PETROAN has praised the Nigerian government’s commitment to revamping state-owned refineries but has called for the immediate privatization of the Port Harcourt and Warri refineries after rehabilitation. They argue that partnering with reputable firms would allow these facilities to compete effectively in the market.
The association urged the federal government to discourage monopolistic practices in the downstream sector to help reduce petrol prices. They believe that fostering competition is the key to achieving lower prices for consumers and have recommended convening an inclusive stakeholders meeting to address ongoing pricing issues in the industry.
