The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has hit back at Dangote Refinery, accusing the company of exploiting Nigerians by selling petrol at N990 per litre to marketers and described the practice as inconsiderate.

Joseph Obele, PETROAN’s National Public Relations Officer, in a statement in Abuja, on Monday, called for competition in the oil retail sector to prevent exploitation and profiteering.

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

PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) two days ago announced plans to sell PMS at a price significantly lower than the current rate in Nigeria.

Obele denied that PETROAN had made any direct price comparisons with Dangote’s PMS, as Dangote’s price was only released by the refinery on Monday.

He disclosed 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.

He said, “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, he said, Dangote Refinery had refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell less.

The Association said 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 its refinery.
“The core determinant for setting the price,” the association said, “is a consideration for the cost of production, then add a fair margin,” noting, however, that PETROAN is committed to high standards in product imports.

He 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, Obele said, was in view of achieving a monopoly for exploitation.

The statement said, “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.”

Consumers, PETROAN, added, get the best value for pricing when competition is at its peak, demanding that competition should be encouraged.

Obele lamented that without competition, the market would be exploitative and strictly for profiteering.