“Imported fuel will be cheaper than current rate” — PETROAN

The Petroleum Products Retail Outlets Owners Association of NIgeria (PETROAN) says the price of Premium Motor Spirit (PMS) it plans to import will be cheaper than the current rate sold in the country.

Dr Joseph Obele, National Public Relations Officer, PETROAN, in a statement on Monday in Abuja.

Obele said competition should be encouraged in the sector to avoid exploitation and profiteering.

He disputed the allegation by Dangote Refinery that PETROAN would import substandard products at cheaper rate, stressing that the claims were not surprising.

The publication was coming after PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) announced plans to sell far lesser than the current selling rate of PMS in Nigeria.

He said PETROAN had never compared the price of Dangote PMS with any other on the fact that Dangote’s PMS price was not known until  it was release by the Refinery on Monday.

He said it had concluded plans with its foreign Refinery counterparts and financial partners to import the best quality of PMS and sell far lesser than the present selling rate of PMS in Nigeria.

“We planned to enter the market before December 2024, pending the approval of our import permit license by the regulatory agency and access to foreign exchange from the Central Bank of Nigeria at the the official rate.

“Before now, Dangote Refinery had refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell lesser.

“The rate of N990 as announced by Dangote Refinery was inconsiderate based on the fact that Dangote enjoyed massive concession for accessing foreign exchange during the construction of the refinery.

“The core determinant for setting price is consideration for cost of production then add a fair margin,” he said.

He described the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos as strategies to push others out of the market.

This, he said, was in view of achieving monopoly for exploitation.

“PETROAN’s drive was solution-centric and patriotic following the pricing instability and turbulences in the downstream sector.

“The reformative and transformational agenda of President Tinubu is seen as inimical to advocates and beneficiaries of monopolistic market.

“The President’s intervention was meant to liberalise the downstream sector by building an all inclusive market. Intensive or aggressive competition in any market brings the best value for money exchange for a commodity.

“Consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.

“Contrary to competition, such a market will be exploitative and strictly for profiteering,” he said.

NAN