The Petroleum Products Retail Outlets Owners Association of Nigeria, on Monday, responded to claims by Dangote Refinery, suggesting that the refinery’s assertion about PETROAN’s potential import of substandard petrol is a familiar tactic used to maintain market dominance.
PETROAN also stated that the petrol they intend to import will be priced below the current rates in Nigeria, promising more affordable options for consumers.
This statement, delivered by the group’s National Public Relations Officer, Dr. Joseph Obele, comes amidst ongoing discussions about market competition and pricing in the oil sector.
In his statement, Obele emphasized the necessity of fostering competition within a deregulated environment, suggesting that it ultimately benefits consumers.
He highlighted that PETROAN has established a dedicated business unit aimed at facilitating petrol imports, with plans to have products available by December 2024, contingent on receiving the necessary regulatory approvals.
The association rebutted claims made by Dangote Refinery, which alleged that PETROAN intended to import substandard petroleum products at reduced prices.
Obele dismissed these allegations as typical of efforts to maintain a monopoly in the market.
He stated, “The publication by Dangote refinery that PETROAN will import substandard petroleum product is not coming as a surprise to stakeholders, because such is his usual gimmick for maintaining monopoly.”
He further clarified that PETROAN had no prior knowledge of Dangote’s petrol pricing until it was publicly announced, underscoring that “PETROAN has never compared the price of Dangote PMS with any other on the fact that Dangote’s PMS price wasn’t known until this morning at the press release by Dangote Refinery.”
PETROAN expressed confidence in its plans, asserting that it has finalized agreements with foreign refineries and financial partners to import high-quality petrol at rates significantly lower than those currently offered in Nigeria.
Obele emphasized, “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 CBN at the official rate.”
In addition to its import plans, PETROAN called for expedited rehabilitation of the Port Harcourt and Warri refineries.
Obele argued that upon completion, these refineries should be privatised and entrusted to companies equipped with the necessary technical expertise to manage them effectively.
He noted, “This will enable the operators of the government-owned refineries to withstand aggressive ballistic competition that will be posed by the known beneficiaries of monopolistic market.”
Highlighting the challenges posed by monopolistic practices, he cautioned that without proper management and competition, many businesses could struggle to survive.
“Antecedents of the beneficiaries of monopolistic market has showed numerous suffocating business owners crashing out of other sectors for a sole operator in the past,” he remarked.
Finally, Obele stressed the importance of transparency in the privatisation process, suggesting that it should be modeled after the successful Indorama Petrochemicals initiative rather than a simple Maintenance Repairs and Operations contract.
Yhis call for transparent privatization reflects PETROAN’s broader concerns about fostering a competitive and fair marketplace for all stakeholders involved in Nigeria’s petroleum sector.
