Kehinde Fajobi
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said on Monday that it plans to import premium motor spirit (PMS) at a lower price than the current market rate, asserting that competitive pricing will benefit Nigerian consumers.
In a statement issued by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, the group stated it had formed a business unit aimed at importing petrol by December.
“Intensive or aggressive competition in any market brings the best value for money exchange for a commodity,” Obele said, adding that “competition should be encouraged.”
He warned that a lack of competition could lead to exploitative pricing in the market.
PETROAN refuted recent claims from Dangote Refinery that some marketers intended to import substandard products at cheaper rates.
“The publication by Dangote Refinery that PETROAN will import substandard petroleum products is not coming as a surprise to stakeholders, because such is his usual gimmick for maintaining a monopoly,” Obele said.
He noted that PETROAN’s plan involves partnering with reputable foreign refineries to import high-quality petrol for Nigerian consumers.
Meanwhile, Pinnacle Oil and Gas Limited, a key downstream sector operator, has also denied involvement in blending substandard fuel near Dangote Refinery.
Bob Dickerman, Pinnacle’s CEO, stated, “Deregulated commodity markets work best with an open system of multiple sellers and multiple buyers bidding to establish the market price. For Nigeria to have supply options that include local refineries or imports is the mechanism that will establish the lowest sustainable prices.”
The statements followed an earlier claim by Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, who warned that a nearby depot might be used by an international trading company to blend substandard products, posing a threat to domestic refining growth.
“It is not unusual for countries to protect their domestic industries to provide jobs and grow the economy,” Chiejina said, referencing high tariffs imposed in the US and Europe to shield local industries.
PETROAN stated it only learned of the pricing strategy from Dangote Refinery after the refinery issued a public statement, asserting that its imports would comply fully with quality standards.