The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Tuesday maintained that there is no law against importation of petroleum products into Nigeria, noting that all efforts must be made to stop any monopolistic tendencies in the downstream oil sector.
The group also said there was a need to ensure that local refiners, importers, depot owners and retail outlets are given a level playing field to operate in the market.
PETROAN President, Billy Gillis-Harry, speaking on Channels Television, explained that oil marketers were more interested in the availability and affordability of petroleum products in the country, not minding whether they are imported or refined in Nigeria.
He said: “PETROAN is very insistent on availability and affordability, and also much more than that is discipline, according to what the PIA (Petroleum Industry Act) says. That’s why we will encourage that monopolistic tendencies of any kind should not be encouraged.
“Everybody should be allowed to play in the market. Even importation should not be a crime because it is not a crime. The PIA makes provision for that. But as patriotic Nigerians that we are, we encourage that let us pursue our internal market and grow our economy strong.”
He explained that oil marketers do not entertain any fears that the Dangote Refinery and other independent refiners in the country were moving towards monopoly.
“We are not afraid that Dangote or any other refinery is moving towards monopoly as earlier suspected or thought about, but we will continue to advise that let refiners refine, let depot owners keep soaring and let retail outlet owners keep retailing too. The whole value chain obligation is to meet Nigerians’ needs,” he said.
Gillis-Harry stated that PETROAN members continue to lift fuel from every possible sources, without discrimination as far as it is available and reasonably priced.
He added: “Primarily, we have a long-term relationship with the NNPC, that is one company an agreement has been entered into, for so many years, and we will continue to benefit from the values of those agreements with our bulk purchase agreement, and the allocation of products.
“We also load from Dangote Refinery because that is a very credible source that we also lift petroleum products from. PETROAN has also entered into a business relationship – the Dangote-MRS-PETROAN relationship. So everywhere there are products to be bought, once our members complete the processes, they start lifting products immediately.”
Meanwhile, the Dangote Petroleum Refinery & Petrochemicals yesterday reduced the cost of diesel to N1,020 per litre, down from N1,075 per litre at the gantry price, in an effort to better serve its customers and Nigerians in general.
Since it began diesel production in January 2024, the refinery said it has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.
It explained that the latest reduction of N55 per litre for diesel was against the backdrop of the revelation by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.
The analyst, according to the statement, also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.
While speaking on the transformative impact of the refinery on Arise Television, the statement quoted Ife to have explained that for years, the equalisation fund had been responsible for managing the price differentials and transportation costs involved in distributing petroleum across the country.
However, the economist noted that it has been reported that the fund owes marketers over N80 billion.
“If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.
“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he said.
Emmanuel Addeh and Peter Uzoho
