The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced concerns over Dangote Petroleum Refinery’s decision to sell petrol at N990 per litre, claiming it’s higher than the cost of imported fuel. According to PETROAN, the landing cost of imported petrol on October 31, 2024, was N978 per litre, making imports a more economical option.
In a recent statement, PETROAN Publicity Secretary Joseph Obele expressed disappointment, emphasizing that Dangote Refinery received substantial concessions in foreign exchange access during construction, yet priced its petrol near international market rates rather than based on local production costs. PETROAN criticized this approach, suggesting it discourages competition and burdens consumers with high prices.
Obele disclosed that PETROAN has partnered with foreign refineries and financial institutions to import high-quality fuel, which it plans to sell at a lower rate than Dangote’s if granted an import license by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and given foreign exchange access at official rates.
This criticism came after Dangote accused PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) of planning to import substandard petroleum products to compete with its refinery. In response, PETROAN dismissed the claim, arguing that such allegations are attempts to maintain a monopoly.
PETROAN also urged President Bola Tinubu to privatize and modernize government refineries in Port Harcourt and Warri to foster competition and reduce prices. The association believes that an inclusive market, where multiple operators can coexist, would best serve Nigerian consumers.
IPMAN National Secretary Terlumun James echoed PETROAN’s concerns in an interview, stating that collaboration among stakeholders is key to providing affordable fuel for Nigerians. He dismissed the claim of plans to blend substandard products, urging a united approach to address Nigeria’s energy challenges.
As of now, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has not commented on the ongoing dispute.
