Petrol Pricing Clash: PETROAN Condemns Dangote Refinery’s N990/Litre Rate Amid Monopoly Concerns
Nigeria’s Petroleum Products Retail Outlets Owners Association (PETROAN) has rebuked the Dangote Petroleum Refinery for setting its petrol price at N990 per litre, calling it an “inconsiderate” move that exploits market conditions. PETROAN argues that despite benefitting from significant concessions, particularly in foreign exchange access during its construction, Dangote’s pricing undermines efforts to stabilize fuel costs for Nigerians.
The association claims that imported petrol remains cheaper, with recent data showing the landing cost of imported fuel at N978 per litre as of October 31, 2024. PETROAN spokesperson Joseph Obele maintained that with proper regulatory backing, the association could provide more affordable fuel, pending its import license approval.
In a statement on Sunday, Dangote Refinery accused PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) of planning to import substandard petrol into Nigeria. PETROAN refuted this, calling it a ploy by Dangote to stifle competition. “Consumers get the best value when competition is encouraged,” Obele argued, suggesting that Dangote’s actions only reinforce a monopoly in the sector.
PETROAN’s strategy includes forming a new business unit, PETROL, aimed at providing quality fuel at competitive prices. Obele asserted that PETROAN’s approach aligns with President Bola Tinubu’s reformative agenda and expressed hopes that regulatory bodies would prevent monopolistic practices. “A nation that granted Dangote substantial concessions shouldn’t see its consumers burdened by global-market pricing when local costs could be lower,” he stated.
PETROAN further lauded Tinubu’s focus on revitalizing Nigeria’s state-owned refineries and recommended privatizing and partnering with qualified firms to ensure sustained competition in the market. According to Obele, fostering a balanced downstream sector is essential for ensuring fair pricing and thwarting monopolistic practices.
