Petrol marketers reignite plan to import high-quality, lower-cost fuel to Nigeria

Business a.m.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has maintained that the price of petrol, which they intend to import, will be lower than the current price being sold in the country.

This insistence comes in response to concerns raised over the cost of the imported petrol, as PETROAN attempts to allay fears and assure the public that their imported fuel will be more affordable than the current domestic price.

In response to concerns over the cost of their imported petrol, the PETROAN has clarified that their intention is to provide lower-cost fuel to Nigerians, as part of its commitment to competition in a deregulated environment.

Joseph Obele, the group’s national public relations officer, stated that PETROAN had incorporated a business unit to facilitate the importation of petrol before December.

PETROAN also refuted allegations made by Dangote Refinery that the group intends to import substandard products at a lower cost.

Obele described the allegations as unfounded and not surprising, given the competitive nature of the industry. He emphasised that PETROAN’s primary objective is to provide affordable, high-quality products to consumers, and to do so in compliance with all regulatory standards and industry best practices.

“Intensive or aggressive competition in any market brings the best value for money exchange for a commodity. Consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.

“Contrarily to competition, such a market will be exploitative and strictly for profiteering,” he stated.

PETROAN, in responded to allegations made by Dangote Refinery, stated that the claims of importing substandard petroleum products are not surprising, as they are a known tactic by Dangote to maintain a monopoly in the market.

Furthermore, the group stated that it has reached agreements with foreign refinery counterparts and financial partners to import high-quality petrol and sell it at a lower price than the current market rate in Nigeria. This move, according to PETROAN, is a response to the call for increased competition in the industry.

Anthony Chiejina, Dangote Group’s chief branding and communications officer, had previously issued a statement alleging that an international trading company had rented a depot facility near the Dangote Refinery to blend substandard products and dump them into the market, in an attempt to undercut Dangote’s higher-quality production.

According to Chiejina, the presence of this depot, which allegedly blends substandard products, poses a risk to the quality of petroleum products in the market, potentially creating competition for Dangote Refinery’s products.

Meanwhile, Pinnacle Oil and Gas Limited, which operates a facility near the Dangote Refinery, has refuted allegations of blending substandard petroleum products, issuing a statement that underscored  the importance of an open, free market system for establishing sustainable prices.

Bob Dickerman, Pinnacle’s chief executive officer, stated that a deregulated market is most effective when it includes multiple buyers and sellers, enabling the establishment of competitive market prices.