The Petroleum Products Retail Outlets Owners Association of Nigeria has accused Dangote Petroleum Refinery of seeking to monopolise the supply of Premium Motor Spirit, otherwise known as petrol, to Nigerians in order to exploit them.
So also did PETROAN say the price of petrol it plans to import will be cheaper than the current rate the product is sold in the country.
Dr. Joseph Obele, the National Public Relations Officer of PETROAN, made this known in a statement he issued on Monday in Abuja.
Obele said competition should be encouraged in the sector to avoid exploitation and profiteering.
He disputed the allegation by Dangote Petroleum Refinery that PETROAN would import substandard products at cheaper rate, stressing that the claims were not surprising.
The claim was made after PETROAN and the Independent Petroleum Marketers Association of Nigeria announced plans to sell far less than the current selling rate of PMS in Nigeria.
Obele said PETROAN had never compared the price of Dangote’s petrol with any other based on the fact that its PMS price was not known until it was released by the refinery on Monday.
He said PETROAN had concluded plans with its foreign refinery counterparts and financial partners to import the best quality of PMS and sell far less than the present selling rate in Nigeria.
He said: “We planned to enter the market before December 2024, pending the approval of our import permit license by the regulatory agency and access to foreign exchange from the Central Bank of Nigeria at the the official rate.
“Before now, Dangote Refinery had refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell lesser.
“The rate of N990 as announced by Dangote Refinery was inconsiderate based on the fact that Dangote enjoyed massive concession for accessing foreign exchange during the construction of the refinery.
“The core determinant for setting price is consideration for cost of production then add a fair margin.”
Obele described the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos State as strategies to push others out of the market.
Also Read
- Governor Sanwo-Olu signs Lagos Electricity Bill into law
- Keyamo fooling Nigerians about Oyedepo’s airstrip licence — MURIC
- FAAN moves against passengers harassment + Video
- Full List: Asake, Ayra Starr, Odumodublvck, others nominated for 2025 MOBO Awards
- Senate sets up committee to review Tax Reform Bills
This, he said, was in view of achieving monopoly for exploitation.
He added: “PETROAN’s drive was solution-centric and patriotic following the pricing instability and turbulences in the downstream sector.
“The reformative and transformational agenda of President (Bola) Tinubu is seen as inimical to advocates and beneficiaries of monopolistic market.
“The President’s intervention was meant to liberalise the downstream sector by building an all inclusive market. Intensive or aggressive competition in any market brings the best value for money exchange for a commodity.
“Consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.
“Contrary to competition, such a market will be exploitative and strictly for profiteering.”
Follow The Eagle Online Channel on WhatsApp
