Selling petrol at N990 to inattentive marketers – PETROAN

The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has reacted to the price of Premium Motor Spirit (PMS) from the Dangote Refinery, calling the price of N990 unreasonable.

In a statement on Monday in Abuja, Dr. Joseph Obele, 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 was intent on importing substandard products at a lower price, noting that such claims were expected.

The announcement follows PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) announcing their intention to sell PMS at a price significantly lower than the current price in Nigeria.

Obele explained that PETROAN did not make direct price comparisons with Dangote’s PMS as the price of Dangote was only released by the refinery on Monday.

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

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

“Previously, Dangote Refinery refused to release its PMS prices until IPMAN and PETROAN announced their willingness to sell less.

“The N990 rate announced by the Dangote Refinery was ill-advised because Dangote enjoyed huge concessions in accessing foreign exchange during the construction of the refinery.

“The main factor in determining price is taking into account the cost of production and then adding a fair margin,” he said.

PETROAN adheres to high standards when importing products

Additionally, the PETROAN spokesman described allegations that PETROAN would import substandard products and that the international company was trying to build a PMS blend plant in Lagos as a strategy to drive others out of the market.

This, he said, was done to achieve a monopoly on exploitation.

“The PETROAN movement was solution-oriented and patriotic, given price volatility and turbulence in the downstream sector.

“President Tinubu’s reform and transformational agenda is seen as inimical to the promoters and beneficiaries of the monopolistic market.

“The President’s intervention was aimed at liberalizing the downstream sector by creating an inclusive market. Intense or aggressive competition in any market ensures the best value for money in exchange for a product.

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

“Contrary to competition, such a market will be exploitative and focused solely on speculation,” he said.

What you should know

A A dispute has arisen between the Dangote refinery and gasoline sellers. above prices for petroleum products.
Aliko Dangote, CEO of Dangote Refinery, noted that marketers are avoiding sourcing gasoline from his refinery. despite the presence of more than 500 million liters of gasoline in warehouses.
In response, marketers represented by IPMAN and PETROAN argue that refinery prices are higher than the cost of imported fuel.
Meanwhile, management of the Dangote Refinery issued a statement stressing that only low-quality fuel will be cheaper as its prices are in line with those in the international market and additional discounts are being offered to remain competitive.