The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has announced plans to import premium motor spirit (PMS) at prices cheaper than those currently available in Nigeria.
This move, intended to promote competition in the country’s deregulated petroleum market, comes as PETROAN disputes recent claims from Dangote Refinery suggesting that imported fuel may be of substandard quality.
In a statement issued Monday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, emphasized the need for a competitive environment, arguing that competition will ultimately benefit Nigerian consumers by driving down prices. He noted that PETROAN has already established a business unit to facilitate the importation of petrol and expects to begin imports before December.
“The presence of multiple sellers in the market will foster a competitive environment, ensuring that consumers receive the best value for their money,” Obele stated. He contended that without competition, the Nigerian fuel market risks becoming exploitative, with prices set strictly for profiteering rather than consumer benefit.
In response to Dangote Refinery’s recent allegations, PETROAN clarified that its imported petrol would meet high-quality standards. Obele dismissed Dangote’s claims as a strategic attempt to maintain market dominance, noting that such statements were not unexpected.
Meanwhile, Pinnacle Oil and Gas Limited, another major player in Nigeria’s downstream sector, has denied involvement in blending substandard petroleum products near Dangote Refinery. The refinery, through its Chief Branding and Communications Officer, Anthony Chiejina, alleged that an international trading company had recently leased a depot facility adjacent to its plant with the intent of blending and distributing lower-quality products to compete with Dangote’s higher-standard offerings.
“This move jeopardizes the growth of domestic refining in Nigeria,” Chiejina remarked, citing similar protective measures taken by other countries to safeguard local industries. He argued that Dangote Refinery’s commitment to quality is essential for Nigeria’s refining industry to thrive and compete globally.
However, Pinnacle Oil’s CEO, Bob Dickerman, responded by underscoring the importance of open competition in a deregulated market. According to Dickerman, a diversified market with both local and international supply options will help stabilize prices and ensure that all products meet Nigeria’s regulatory standards. He added that free markets naturally encourage responsible behavior among players while providing consumers with options.
This ongoing debate highlights the challenges within Nigeria’s oil and gas industry, as stakeholders weigh the benefits of local production against the pressures of international competition.
PETROAN’s initiative could reshape Nigeria’s petroleum market, potentially driving prices lower while stirring debates on quality standards and market control.
