The controversy around Nigeria’s petroleum market intensified as the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) accused Dangote Refinery of monopolistic practices, citing its high petrol price of N990 per liter. PETROAN argues this price is inconsiderate, given the government concessions Dangote received for foreign exchange during the refinery’s construction. “Consumers deserve competitive pricing, especially in a market where Dangote enjoyed favorable terms,” said Joseph Obele, PETROAN’s National Public Relations Officer.
PETROAN has also raised concerns over Dangote Refinery’s claims that other fuel importers might bring in substandard products. “This narrative is misleading and an attempt to control the market by excluding competitors,” said Obele, responding to Dangote’s allegations. The refinery had previously warned against cheaper imports, suggesting they could pose health and environmental risks due to lower quality.
To address the dispute, PETROAN representatives are scheduled to meet with Dangote Refinery this week, hoping for a collaborative approach. Gilli Billis-Harry, PETROAN’s President, stressed, “We want to work with Dangote, but pricing must be fair and aligned with market dynamics, not just international benchmarks.” PETROAN has also signaled plans to import high-quality petrol at lower prices by December 2024, contingent on approval for foreign exchange access and import licenses.
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In response, Dangote Refinery defended its pricing, aligning it with global standards to remain competitive. Anthony Chiejina, the company’s Group Chief Branding Officer, explained that the refinery’s pricing reflects international rates to maintain high-quality standards. He noted that a trading firm recently leased a nearby facility, allegedly intending to blend and sell lower-quality products, a move that, according to Dangote, would harm the market.
PETROAN appealed to Nigeria’s federal government to prevent monopolistic control in the downstream petroleum sector. “Healthy competition is essential for fair pricing,” Obele remarked, urging the government to encourage a level playing field for all market players. PETROAN believes that a balanced market with multiple stakeholders can ensure consumers benefit from lower prices.
