Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have criticised Aliko Dangote, the President of the Dangote Group, for his attempts to monopolize Nigeria’s oil sector.
They allege that he is actively working to hinder competition in the industry to maintain control.
In a statement signed by Dr. Joseph Obele, the national public relations officer for PETROAN, the organisation urged the Federal Government to prevent and dismantle any monopolistic practices in the downstream sector.
They emphasized that fostering competition is essential for reducing the current selling price of Premium Motor Spirit (PMS). PETROAN expressed its commitment to supporting the Federal Government in promoting a competitive market.
The statement, titled “Dangote’s PMS Price Announcement Was Unexpected; PETROAN Will Offer Lower Prices When Given Import License by NMDPRA,” praised President Bola Tinubu’s reformative and transformational initiatives in the oil sector.
These reforms, according to PETROAN, have put those who advocate for a monopolistic market on notice.
Dr. Obele explained that the President’s interventions aim to liberalize the downstream sector by creating an inclusive market. He stated that robust competition leads to the best value for consumers when purchasing commodities, ultimately resulting in better pricing for the public.
PETROAN has also initiated plans with international refinery partners and financial institutions to import high-quality PMS at prices lower than the current market rate in Nigeria.
According to Dr. Obele, Dangote has been unsettled by these developments, noting that his recent publication coincided with announcements from PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) about their plans to offer PMS at lower prices.
“The publication by Dangote refinery that PETROAN will import sub standard Petroleum 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 far lesser than the current selling rate of PMS in Nigeria.
“It is important to set the records straight that PETROAN has never compared the price of Dangote PMS with any other on the fact that Dangote’s PMS price wasn’t known until this morning at the press release by Dangote Refinery.
“PETROAN has concluded plans with her foreign Refinery counterparts and financial partners to import the best quality of PMS and then sell far lesser than the present selling rate of PMS in Nigeria.
“We planned to enter the market before December 2024, pending the approval of our import permit license by the regulatory agency and access to foreign exchange from CBN at the official rate.
“Before now Dangote Refinery has refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell lesser. The rate of N990 as announced by Dangote refinery was inconsiderate base on the fact Dangote Refinery enjoyed massive concession for accessing foreign exchange during the construction of the refinery.
“The core determinant for setting price is consideration for cost of production then add 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 international selling rate at the global market.
“A balance market should be an all inclusive market players where the market leader is enjoying his lead, while the market challenger is servicing a certain degree of the consumers and the market followers are still surviving in the market at affordable price.
“Therefore, it is penitent that Federal Government should discourage and dismantle any attempt of monopoly in the downstream sector inview of crashing the current selling rate of PMS.
“The only catalyst to trigger PMS price reduction is by ushering in competition and PETROAN will support the Federal government in achieving intensive competition in the sector,” the statement read in part.
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