I am selling petrol at N990 to unsolicited marketers – PETROAN

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reacted to the price of Premium Motor Spirit (PMS) at the Dangote Refinery, describing the price of N990 as inconsiderate.

In a statement in Abuja on Monday, Dr. Joseph Obele, the National Public Relations Officer of PETROAN, stressed the need for competition in the sector to prevent exploitation and profiteering.

Obele also denied allegations by Dangote Refinery that PETROAN plans to import substandard products at a lower price, noting that such claims are expected.

The statement follows the announcement by PETROAN and the Independent Petroleum Distributors Association of Nigeria (IPMAN) of their intentions to sell PMS at a price significantly lower than the current rate in Nigeria.

Obele stated that PETROAN did not make any direct price comparison with the Dangote PMS as the Dangote price was only released by the refinery on Monday.

He added that PETROAN has made arrangements with its foreign refining partners and financial backers to import high quality PMS and sell it at a much lower rate than what is currently available in Nigeria.

“We planned to enter the market before December 2024, pending approval of our import authorization by the regulatory agency and access to foreign exchange from the Central Bank of Nigeria at the official rate.

“Until now, Dangote Refinery had refused to make the PMS sale rate public until IPMAN and PETROAN announced their willingness to sell less.

“The quota of N990 announced by Dangote Refinery was ill-considered on the basis that Dangote enjoyed massive concessions for access to foreign exchange during the construction of the refinery.

“The basic determinant of pricing is a consideration for cost of production, then you add a fair margin,” he said.

PETROAN is committed to high standards in importing products

The PETROAN spokesperson further described allegations that PETROAN was importing inferior products and that an international company was trying to set up a PMS blending plant in Lagos as strategies to push others out of the market.

This, he said, was with a view to obtaining a monopoly for exploitation.

“PETROAN’s din has been solution-focused and patriotic in the wake of price volatility and turbulence in the downstream sector.

“President Tinubu’s reformative and transformative agenda is seen as inimical to the advocates and beneficiaries of a monopoly market.

“The President’s intervention was meant to liberalize the downstream sector by building an all-inclusive market. Intensive or aggressive competition in any market brings the best value for money in exchange for a commodity.

“Consumers get the best value for their prices when competition is at its peak, so competition should be encouraged.

“Unlike competition, such a market will be exploitative and strictly for profit,” he said.

What you should know

A a dispute arose between the Dangote Refinery and the oil traders on the price of petroleum products.
Aliko Dangote, CEO of Dangote Refinery noted that marketers avoid buying petrol from his facility, despite having over 500 million liters of petrol in storage.
In response, marketers represented by IPMAN and PETROAN claim that refinery prices are higher than the landed cost of imported fuel.
Meanwhile, the management of Dangote Refinery issued a statement stressing that only substandard fuel would be cheaper as their prices align with international market rates, with additional discounts offered to remain competitive.