The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticized the N990 per liter price set by Dangote Refinery for Premium Motor Spirit (PMS), calling it “inconsiderate” and emphasizing the need for competition in Nigeria’s fuel market. PETROAN’s National Public Relations Officer, Dr. Joseph Obele, expressed concerns over the high price and called for measures to prevent monopoly and ensure fair pricing.
Obele disputed allegations from Dangote Refinery suggesting PETROAN’s plans to import substandard products at lower prices, describing them as a tactic to dominate the market. Instead, Obele noted that PETROAN, along with the Independent Petroleum Marketers Association of Nigeria (IPMAN), has made arrangements to import high-quality PMS at a rate significantly lower than the current market price in Nigeria.
These plans, he stated, are set to launch before December 2024, pending government approval of their import permit and foreign exchange access from the Central Bank of Nigeria.
“Dangote’s price is inconsiderate, given the favorable concessions the refinery received, including access to foreign exchange during construction,” Obele remarked, explaining that PETROAN had only responded after Dangote’s price was officially disclosed following PETROAN and IPMAN’s announcement of their lower pricing intentions.
Obele emphasized PETROAN’s commitment to high standards in fuel imports, rejecting any claims of substandard product plans as an attempt to secure a monopoly. He stressed that monopolistic practices would hinder President Bola Tinubu’s reformative agenda for a liberalized, inclusive downstream sector.
“Competition in any market benefits consumers by ensuring the best value for their money,” Obele added, advocating for fair market competition to avoid exploitation.
The disagreement has intensified between Dangote Refinery and Nigeria’s independent fuel marketers over pricing. Dangote Refinery’s CEO, Aliko Dangote, reported that some marketers have avoided purchasing fuel from his refinery, despite over 500 million liters in stock, alleging that cheaper fuel options might compromise quality.
In contrast, PETROAN and IPMAN maintain that Dangote’s prices are above the import cost, prompting them to seek alternative, high-quality imports to provide Nigerians with more affordable options.
