The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has described the statement by Dangote Refinery that it would import substandard petrol into the country as a ploy to monopolise the oil and gas market.
PETROAN, in a statement on Monday signed by its public relations officer, Dr. Joseph Obele, insisted that competition must be allowed in a deregulated market.
PETROAN stated that “The reformative and transformational agenda of the President 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.
“Contrarily to competition, such a market will be exploitative and strictly for profiteering. The publication by Dangote Refinery that PETROAN will import sub standard petroleum product is not coming as a surprise to stakeholders, because such is his usual gimmick for maintaining monopoly.”
IPMAN had earlier said that products from Dangote Refinery were being sold higher than imported products.
According to IPMAN national welfare officer, John Kekeocha on Channels Television’s The Morning Brief, “If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all this while then?”
However, in a statement on Sunday, Dangote had alleged that oil marketers were importing substandard petrol into the country, saying they do not have the interest of Nigerians at heart.
Dangote said, “Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive, relative to the price of imports. If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles.”
The umbrella body of petroleum retailers insisted that its members were not aware of the cost of petrol from Dangote Refinery until the price was released on Sunday.
According to PETROAN, only a pricing competition will ensure consumers enjoy value for their money.
“Before now Dangote Refinery had refused to make public her selling rate of PMS until IPMAN and PET ROAN announced readiness to sell lesser.
“The rate of N990 as announced by Dangote was inconsiderate based on the fact Dangote Refinery enjoyed massive concessions for accessing foreign exchange during the construction of the refinery.
“The core determinant for setting price is consideration for cost of production, then adding a fair margin. But this wasn’t the case for the determinant of PMS price by Dangote Refinery as they said the parameter was comparison with the international selling rate at the global market,” Dr. Obele explained.
A public affairs commentator, Dr. Tokunbo decried the back and forth by players in Nigeria’s mid and downstream oil sector noting that “the sector is big enough to accommodate all players.”
In a chat with Blueprint, economist, Adefolarin Olamilekan, noted that the accusations and counter accusations by stakeholders in the domestic oil and gas sector is disheartening.
According to Adefolarin, the whole drama is about greater control of the sector.
“Nevertheless, what Nigerians want is affordable, accessible and clean petrol for their daily use.
“Moreso, it comes to the point that oil marketers must refrain from their stand on importation of pms.
“On the other hand, Dangote Group must come out clear on the price of pms especially from the ex refinery price side,” he said.
The NNPC Ltd had backed out of being the sole off takers of petrol from Dangote Refinery, saying marketers were free to deal directly with the Refinery.