PETROAN Plans Cheaper Petrol Imports, Challenges Dangote Refinery Monopoly

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has announced that the petrol it plans to import will be more affordable than the current rates in the country.

In a statement, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, emphasised the need for healthy competition in a deregulated market.

He revealed that PETROAN has set up a business unit to enable petrol imports by December.

The group dismissed claims by Dangote Refinery suggesting that marketers plan to import low-quality fuel at a reduced price, labelling the statement as unsurprising.

According to PETROAN, it was only informed of Dangote Refinery’s petrol prices yesterday, when the refinery issued a press release.

“Strong competition in any market delivers the best value for consumers. When competition is intense, consumers benefit from better pricing,” Obele stated. “Without competition, the market becomes purely profit-driven and exploitative.”

He added that Dangote Refinery’s allegation about substandard imports from PETROAN was “a familiar tactic to maintain monopoly.” Obele clarified that PETROAN had never compared its petrol prices with Dangote’s, as Dangote’s rates were only disclosed that morning.

PETROAN also shared its plans to partner with international refineries and financial backers to import high-quality petrol at a price lower than the current rate in Nigeria.

The association aims to enter the market by December 2024, subject to approval of its import permit from regulators and access to foreign exchange from the Central Bank of Nigeria (CBN) at the official rate.

Additionally, PETROAN called for the prompt completion of the ongoing rehabilitation of the Port Harcourt and Warri refineries. They advised that these refineries, once restored, should be handed over to firms with the technical expertise to manage them effectively.

“We maintain our recommendation that after rehabilitation, the Port Harcourt and Warri refineries should be privatised and entrusted to reputable firms with the technical, managerial, and financial capability to run them, in partnership with PETROAN and other key stakeholders,” the statement read.

PETROAN argued that this approach would enable the state-owned refineries to withstand strong market competition, preventing a single player from monopolising the industry. They noted that past monopolies have often forced smaller businesses out, leading to a single dominant operator across various sectors.