The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has condemned the Dangote Petroleum Refinery for selling petrol at N990 per litre, labeling it inconsiderate given the massive concessions the company enjoyed during its construction. PETROAN stated that imported petrol, landing at N978 per litre, is cheaper than the Dangote refinery’s product. The association also emphasized the importance of competition in ensuring fair pricing and vowed to sell petrol at lower rates once granted an import license.
In a statement, PETROAN’s Publicity Secretary, Joseph Obele, expressed discontent with Dangote’s pricing approach, claiming the refinery had delayed announcing its rate until PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) signaled plans to sell petrol at a lower cost. He also criticized Dangote’s claims that PETROAN and IPMAN were planning to import substandard fuel as a tactic to maintain market dominance. PETROAN reaffirmed its commitment to importing high-quality products and competing on price.
Obele further criticized Dangote’s pricing strategy, suggesting that it unfairly referenced international market rates despite benefiting from favorable foreign exchange conditions during the refinery’s construction. He argued that pricing should be based on production costs plus a fair margin, not global benchmarks, and compared it to how Chinese goods are priced lower due to cheaper production costs.
In response to Dangote’s monopoly accusations, IPMAN denied claims of establishing a substandard blending plant in Lagos. The association called for unity among stakeholders to provide Nigerians with affordable energy. Both PETROAN and IPMAN remain committed to their efforts to lower fuel prices and challenge the current market structure, with discussions ongoing with the Dangote refinery regarding fuel distribution.
