Selling petrol at N990 to marketers inconsiderate – PETROAN   

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

Obele also refuted allegations from Dangote Refinery that PETROAN intends to import substandard products at a lower price, noting that such claims were expected.

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

Obele clarified that PETROAN has not made any direct price comparisons with Dangote’s PMS, as Dangote’s price was only released by the refinery on Monday.

He added that PETROAN has finalized arrangements with its foreign refinery 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 the approval of our import permit license by the regulatory agency and access to foreign exchange from the Central Bank of Nigeria at 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 less. 

“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 the price is a consideration for the cost of production then add a fair margin,” he said. 

PETROAN commits to high standards in product imports 

In addition, the spokesperson of PETROAN described the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos as strategies to push others out of the market.

This, he said, was in view of achieving a monopoly for exploitation.

“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 Tinubu is seen as inimical to advocates and beneficiaries of a 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 in exchange for a commodity. 

“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 in 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,” he said.