PETROAN Criticizes Dangote on petrol imports

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticized Dangote Refinery’s claim that any petroleum products priced lower than those from its refinery are substandard, calling it a strategy to maintain a monopoly in the market. PETROAN’s spokesperson, Dr. Joseph Obele, responded in a statement, asserting that competition is the only way to drive down prices and challenge Dangote Refinery’s pricing.

Olawande described the allegations made by Dangote Refinery as typical tactics to push competitors out of the market and preserve its monopoly. He argued that PETROAN intends to offer cheaper petrol once it receives an import license from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). PETROAN claimed that the current petrol prices set by Dangote Refinery are surprising and that its own prices would be significantly lower once allowed to import.

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The association also referenced past statements from Dangote Refinery, including accusations that the Nigerian National Petroleum Corporation (NNPC) was importing inferior products, and claims about a blending plant in Malta. According to PETROAN, these allegations are part of a strategy to hinder competition.

PETROAN emphasized that it has planned to import high-quality petrol at lower prices, partnering with foreign refineries and financial institutions, and aims to enter the market by December 2024, pending approval from regulatory agencies. The association criticized Dangote Refinery’s pricing model, which it believes is based on international market rates rather than the actual cost of production, and noted that the refinery benefited from substantial concessions in accessing foreign exchange.

PETROAN also commended President Bola Tinubu for his efforts to revitalize Nigeria’s refineries and suggested that once the Port Harcourt and Warri refineries are rehabilitated, they should be privatized and operated by competent firms in partnership with PETROAN. The association warned against monopolistic practices and argued that only through healthy competition could petrol prices be reduced.

Furthermore, PETROAN urged the government to organize a comprehensive stakeholders’ meeting, including DAPPMAN, MEMAN, PETROAN, IPMAN, NUPENG, and PENGASSAN, to address the ongoing pricing instability in the downstream sector and find a sustainable solution for petrol pricing in Nigeria.