The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is taking on Dangote Refinery, accusing it of trying to monopolize the Nigerian fuel market and push competitors out. PETROAN isn’t holding back, alleging that Dangote’s tactics are all about maintaining control in the downstream sector at the expense of fair competition.
Dangote Refinery, in a bid to justify its prices, fired back with claims that PETROAN and other marketers are only complaining because they want to bring in cheaper, “substandard” products. Dangote disclosed that its petrol sells at a premium: N990 per liter on trucks and N960 into ships, pricing it against the “global market rate.” This response came after PETROAN and IPMAN (Independent Petroleum Marketers Association of Nigeria) expressed plans to offer fuel at lower prices than Dangote’s steep rates. But, according to Dangote, if PETROAN can beat those prices, it must be through lower-quality imports.
This whole exchange has ignited a fierce debate. PETROAN argues that Dangote’s pricing strategy is purely exploitative, especially for a company that enjoyed favorable treatment from the Nigerian government, including huge forex concessions during its construction phase. They argue that a truly competitive market would offer Nigerians fairer prices and prevent profiteering under the guise of “international parity.”
PETROAN has not only voiced their disapproval of Dangote’s pricing but has also laid out plans to import high-quality petrol through partnerships with foreign refineries, aiming to enter the market by December 2024, pending regulatory approvals. They say this will be a game-changer in offering Nigerians better prices. Dangote, however, continues to insist that any price lower than theirs points to an attempt to flood the market with subpar fuel, a strategy PETROAN calls a “usual gimmick” for securing a monopoly.
In response, PETROAN has commended President Tinubu’s efforts to overhaul the nation’s refineries and called for a full privatization of the Port Harcourt and Warri plants. They believe that privatizing these refineries with competent, experienced stakeholders—including PETROAN itself—would inject genuine competition into the market and break the monopoly that they allege Dangote is building.
As it stands, PETROAN is pushing back on Dangote’s assertions, calling for transparency and a balanced playing field. They believe the government should “dismantle any attempt of monopoly in the downstream sector” to bring relief to Nigerians at the pump. They also urge the government to facilitate an industry-wide dialogue to set a fair pricing model, involving stakeholders from across the sector, including DAPPMAN, MEMAN, IPMAN, and union groups like NUPENG and PENGASSAN.
