The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has responded strongly to what it describes as Dangote Petroleum Refinery’s alleged monopoly in the Premium Motor Spirit (PMS) market, pledging to lower prices and intensify competition. PETROAN, in a statement, declared its resolve to break Dangote’s grip on PMS pricing, which it argues is exploitative despite the local production setup.
PETROAN announced its intention to establish a new strategic unit, PETROL, that will actively challenge Dangote's dominance in the market. This announcement follows recent remarks from Dangote Refinery, which accused PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) of planning to import substandard fuel with international firms. Dangote’s Group Chief Branding Officer, Anthony Chiejina, warned that any claims to import cheaper PMS imply the dumping of low-quality products that could damage Nigerian vehicles and jeopardize public health.
In its rebuttal, PETROAN alleged that Dangote’s actions reflect a disregard for the national interest, despite benefiting from significant governmental support during the development of its 650,000 barrels-per-day refinery. PETROAN’s spokesperson emphasized that “competition in any market ensures value for money,” highlighting the association’s commitment to fostering a liberalized market as envisioned by President Bola Tinubu. According to PETROAN, Dangote’s monopoly not only stifles healthy competition but also prioritizes profiteering at the expense of Nigerian consumers.
PETROAN also revealed that Dangote’s pricing of PMS—reported to be N960 per liter for marine sales and N990 per liter for road sales—was only disclosed after PETROAN and IPMAN signaled their readiness to enter the market with competitive rates. The association argued that Dangote’s pricing formula, which aligns with global benchmarks, neglects the favorable concessions the company received, including access to foreign exchange.
With plans to import PMS by December 2024, PETROAN has already secured partnerships with international refiners and financial backers. It anticipates that the arrival of its imported fuel, pending regulatory approval, will significantly reduce prices for Nigerian consumers. “We plan to enter the market before the end of the year, provided our import permit license is approved and we secure foreign exchange at the official rate,” PETROAN stated.
The association dismissed Dangote’s accusation of importing substandard products as baseless, suggesting that it is merely a strategy to stifle competition and sustain a monopolistic hold. PETROAN pointed to the recent surge in diesel (AGO) prices, which rose to over N1,000 per liter following Dangote’s entry into the AGO market—a development that, according to PETROAN, contradicts the image of a “savior refinery.”
PETROAN commended President Bola Tinubu, who also serves as the Minister of Petroleum, for his dedication to revitalizing the nation’s refineries, ensuring no funding obstacles for these ongoing rehabilitation projects. The association urged the president to continue safeguarding the industry from monopolistic practices, advocating instead for a balanced, inclusive market where various players can coexist, and prices remain accessible to consumers.
“An inclusive market should have a healthy leader, competitive challengers, and resilient followers,” PETROAN remarked, “and we call on the federal government to discourage monopolies that only serve to exploit Nigerians.”
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