The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has declared that it can provide petrol at a lower cost than the Dangote Refinery, rejecting accusations of importing substandard products.
On Monday, PETROAN reiterated that its members are capable of selling petrol at a more affordable rate than the current price offered by Dangote Refinery to Nigerian oil marketers.
The Dangote Refinery had previously accused PETROAN, along with other associations, of intending to import substandard products, arguing that any organization selling fuel at a rate lower than Dangote’s is likely offering inferior quality.
In a statement from Dr. Joseph Obele, PETROAN’s National Public Relations Officer, the association announced the establishment of a strategic business unit aimed at achieving this cost reduction. It stated that its members are driven by patriotism amidst price volatility and instability in Nigeria’s downstream sector and believe that President Bola Tinubu’s agenda for the oil sector opposes the interests of monopolistic advocates.
PETROAN emphasized that Tinubu’s policies were intended to liberalize the downstream sector and foster a competitive, inclusive market. “Competition in any market ensures the best value for consumers. Without it, the market becomes purely exploitative, focused on profit rather than fair pricing,” the statement read.
PETROAN also refuted the notion that it ever made direct price comparisons with Dangote Refinery, highlighting that Dangote’s prices were not publicly disclosed until Sunday’s announcement. PETROAN revealed plans to partner with foreign refineries and financial institutions to import high-quality Premium Motor Spirit (PMS) at a price significantly lower than the current market rate. The association intends to enter the market by December 2024, pending regulatory approval and access to foreign exchange at the Central Bank of Nigeria’s official rate.
The statement criticized Dangote’s newly announced price of ₦990 per liter, arguing it is unjustifiable given the significant foreign exchange concessions Dangote Refinery received during construction. PETROAN claimed Dangote’s pricing is tied to global rates rather than production costs plus a fair margin, a practice it views as exploitative given Nigeria’s support for the refinery’s construction.
Citing examples, PETROAN noted that goods from China are priced lower than similar American products due to differing production costs, arguing that Dangote should apply a similar rationale. It dismissed Dangote’s claims that PETROAN plans to import inferior products as an attempt to monopolize the market and eliminate competition.
“Evidence shows that deregulated diesel sold for less than ₦800 a few weeks before Dangote Refinery entered the market, after which prices surged to above ₦1,000,” PETROAN stated. It expressed appreciation for President Tinubu’s commitment to reviving the nation’s refineries and advised that once rehabilitated, the Port Harcourt and Warri refineries should be privatized under reputable management, ideally in collaboration with PETROAN and other stakeholders.
Such partnerships, PETROAN believes, would enable government-owned refineries to compete robustly against monopolistic interests.
