DANGOTE’S N990/LITRE PETROL PRICE UNDER FIRE: MARKETERS CLAIM IMPORTED FUEL IS CHEAPER
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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticized Dangote Petroleum Refinery’s decision to sell petrol at N990/litre, citing unfair advantage due to concessions received during construction.
_Key Points:_
– _Cheaper Imported Petrol_: PETROAN claims imported petrol is cheaper, with a landing cost of N978/litre as of October 31, 2024.
– _Dangote’s Price Under Scrutiny_: Marketers question Dangote’s N990/litre price, considering concessions received during construction.
– _Allegations of Substandard Imports_: Dangote Refinery alleged PETROAN and IPMAN plan to import substandard products, which PETROAN denies.
PETROAN’s Publicity Secretary, Joseph Obele, stated, “PETROAN will sell far less than the current selling rate of PMS.” This implies that marketers may sell petrol below N990/litre, sparking a price war.
_Implications:_
– _Price Competition_: Marketers’ move may lead to reduced petrol prices, benefiting consumers.
– _Dangote Refinery’s Market Share_: The refinery’s dominance may be challenged by cheaper imports.
– _Regulatory Intervention_: Authorities may need to intervene to ensure fair competition and product quality.
The development highlights tensions between Dangote Refinery and marketers, with potential consequences for Nigeria’s petroleum market.
