INDEPENDENT NG
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) on Monday declared that the accusations that it is planning to import cheaper and substandard Petroleum products into the country is Dangote’s ploy to use its usual gimmick for maintaining monopoly.
In a statement, PETROAN’s spokesperson, Dr. Joseph Obele, emphasized the group’s commitment to providing high-quality products at competitive rates, contrasting with Dangote’s pricing strategy, which they argue is not aligned with local production costs.
The statement reads in part: “Consumers gets the best value for pricing when Competition is at it’s peak, hence Competition should be encouraged.
“Contrarily to Competition, such a market will be exploitative and strictly for profiteering.The publication by Dangote refinery that PETROAN will import sub standardPetroleum product is not coming as a surprise to Stakeholders, because such is his usual gimmick for maintaining monopoly.
“The publication was coming after PETROAN and IPMAN announced plans to sell farlesser than the current Selling rate of PMS in Nigeria.
“It is important to set the records straight that PETROAN has never compared the priceof Dangote PMS with any other on the fact that Dangote’s PMS price wasn’t known untilthis morning at the press release by Dangote Refinery.
“PETROAN has concluded plans with her foreign Refinery counterparts andfinancial partners to import the best quality of PMS and then sell far lesser than thepresent selling rate of PMS in Nigeria.
“We planned to enter the market before December 2024, pending the approval ofour import permit license by the regulatory agency and access to foreign exchangefrom CBN at the the official rate.
“Before now Dangote Refinery has refused to make public her selling rate of PMSuntil IPMAN and PETROAN announced readiness to sell lesser.
“The rate of #990 as announced by Dangote refinery was inconsiderate base on thefact Dangote Refinery enjoyed massive concession for accessing foreign exchangeduring the construction of the refinery.
“The core determinant for setting price is consideration for cost of production thenadd a fair margin. But this wasn’t the case for the determinant of PMS price by Dangote refinery as they said” the parameter was comparison with the internationalselling rate at the global market.
“A nation that gave you a yet to be disclosed concession for foreign exchange whichwas highly criticised by financial expert’s, such a country Pricing template shouldn’thave been templated by the selling rate at the international market but rather it should have been cost of production plus fair margin.
“Goods from the China markets are not selling as high like goods from the Americamarket because cost of production differs.
“The allegations that PETROAN will import inferior Products and saying also that aninternational company is trying to establish a PMS blending plant in Lagos are allstrategies for Dangote Refinery to push others out of the market in of view achievingmonopoly for exploitation.
“Few months ago the CEO of Dangote Refinery said NNPC LTD was importing inferior Petroleum Products, that his own was far better than what NNPC LTD was selling to Marketers.
“In another press conference he said the Refinery at Malta was just a blending plant and not a Refinery. All the allegations are with the Objectives of closing the doors for other Operators so to enjoy monopoly.
“Evidences available showed that diesel (AGO) as a deregulated product was sellingless than #800 in Nigeria market few weeks before the commencement of AGOproduction by Dangote Refinery, at the entrance of AGO market by Dangote refinerywe witnessed a rapid surge above #1,000 as against the the perception of a“SALVAGING REFINERY”.
“PETROAN uses this medium to commend Mr President for his commitment towardsthe revamping of the nation owned refineries.
“It is on record that the ongoingrehabilitation project never suffers funding under President Tinubu as it was earlier.We will still maintain our position by counselling that the Port Harcourt and WarriRefinery plant after rehabilitation should immediately be privatised and handled overto a reputable firm that has the Technical capability, managerial skills and financialstrength in partnership with PETROAN and other critical Stakeholders.
“This will enable the Operators of the government owned refineries to withstand aggressive ballistic Competition that will be poise by the known beneficiaries of monopolistic market.
