News

Petrol Pricing: Dangote trying to suppress competition, Petrol sellers allege

Published

3 months ago

November 4, 2024

By Kayode Sanni-Arewa

Petroleum Products Retail outlets Owners Association of Nigeria (PETROAN) has accused Dangote Refinery of trying to stifle competitors in the downstream sector.

The marketers’ accusation follows Dangote Refinery’s claim that marketers are complaining of its petrol pricing because they want to import substandard products at cheaper rates.

The refinery had In a statement on Sunday disclosed that it sells petrol at N990 per litre in trucks and N960 per litre into ships. It says its pricing is in comparison with the international selling rate at the global market.

The disclosure by Dangote Refinery was after both PETROAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN) had said that they can buy petrol at cheaper rates than Dangote rates.

The refinery In its reply said that only substandard products can be imported at cheaper rates than its rates.

But PETROAN in the latest in a statement signed by its spokesperson, Joseph Obele, on Monday, said the accusation of importing substandard product by Dangote is “his usual gimmick for maintaining monopoly.”

The marketers maintained that consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.

They added any market devoid of competition will be exploitative and strictly for profiteering.

PETROAN said it has concluded plans with her foreign refinery counterparts and financial partners to import the best quality of PMS and then sell far lesser than the present selling rate of PMS in Nigeria.

The statement reads: “Petroleum Products Retail outlets Owners Association of Nigeria PETROAN has successfully incorporated a Strategic Business unit called PETROL.

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

“The reformative and Transformational agendas of President is seen as inimical to advocates and beneficiaries of monopolistic market. The President Interventions 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 gets the best value for pricing when Competition is at it’s peak, hence Competition should be encouraged.

Contrarily to Competition, such a market will be exploitative and strictly for profiteering. The publication by Dangote refinery that PETROAN will import sub standard Petroleum product is not coming as a surprise to Stakeholders, because such is his usual gimmick for maintaining monopoly.

“The publication was coming after PETROAN and IPMAN announced plans to sell far lesser than the current Selling rate of PMS in Nigeria.

“It is important to set the records straight that PETROAN has never compared the price of Dangote PMS with any other on the fact that Dangote’s PMS price wasn’t known until this morning at the press release by Dangote Refinery.

“PETROAN has concluded plans with her foreign Refinery counterparts and financial partners to import the best quality of PMS and then 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 CBN at the the official rate.

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

“The rate of #990 as announced by Dangote refinery was inconsiderate base on the fact Dangote Refinery 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. But this wasn’t the case for the determinant of PMS price by Dangote refinery as they said” the parameter was comparison with the international selling rate at the global market.

“A nation that gave you a yet to be disclosed concession for foreign exchange which was highly criticised by financial expert’s, such a country Pricing template shouldn’t have been templated by the selling rate at the international market but rather it should have been cost of production plus fair margin.

“Goods from the China markets are not selling as high like goods from the America market because cost of production differs.

“The allegations that PETROAN will import inferior Products and saying also that an international company is trying to establish a PMS blending plant in Lagos are all strategies for Dangote Refinery to push others out of the market in view achieving monopoly for exploitation

Few months ago the CEO of Dangote Refinery said NNPC LTD was importing inferior Petroleum Products, that his own was far better than what NNPC LTD was selling to Marketers. In another press conference he said the Refinery at Malta was just a blending plant and not a Refinery. All the allegations are with the Objectives of closing the doors for other Operators so to enjoy monopoly.

“Evidences available showed that diesel (AGO) as a deregulated product was selling less than #800 in Nigeria market few weeks before the commencement of AGO production by Dangote Refinery, at the entrance of AGO market by Dangote refinery we witnessed a rapid surge above #1,000 as against the the perception of a “SALVAGING REFINERY”.

“PETROAN uses this medium to commend Mr President for his commitment towards the revamping of the nation owned refineries. It is on record that the ongoing rehabilitation project never suffers funding Under President Tinubu as it was earlier.

“We will still maintain our position by counselling that the Port Harcourt and Warri Refinery plant after rehabilitation should immediately be privatised and handled over to a reputable firm that has the Technical capability, managerial skills and financial strength in partnership with PETROAN and other critical Stakeholders.

“This will enable the Operators of the government owned refineries to withstand aggressive ballistic Competition that will be poise by the known beneficiaries of monopolistic market. Antecedents of the beneficiaries of Monopolistic market has showed numerous suffocating Business owners crashing out of other sectors for a sole operator in the past.

“Stakeholders concerns is a prayer that the process of the Privatisation should be transparent using the Indorama Petrochemicals as a model as against Maintenance Repairs And Operations (MRO) contract Business scholars have described the red ocean strategy as a situation when companies try to outperform their rivals to grab a greater share of existing demand.

“While Some other business scholars argued that it is detrimental to adopt the red ocean strategy with the motive for making your competitors quit in view of acquiring their facilities, because such market will be a Monopolistically orchestrated market in view of exploiting the people.

A balance market should be an all inclusive market players where the market leader is enjoying his lead, while the market challenger is servicing a certain degree of the consumers and the market followers are still surviving in the market at affordable price.

“Therefore, it is penitent that Federal Government should discourage and dismantle any attempt of monopoly in the downstream sector in view of crashing the current selling rate of PMS. The only catalyst to trigger PMS price reduction is by ushering in Competition and PETROAN will support the Federal government in achieving intensive competition in the sector.

“Most importantly, the Solution to the ongoing downstream sector Pricing turbulence and instability is for Mr President to midwife or delegate an all inclusive Stakeholders Meeting including DAPPMAN, MEMAN, PETROAN, IPMAN NUPENG and PENGASSAN.

“This meeting tends to get first hand valuable inputs from the industry

Players in view of having a final solution for PMS pricing in the downstream sector.”

(Channels TV: Text, Excluding Headline)

News

Sokoto govt intensify operations against bandit, terrorists

Published

35 minutes ago

January 22, 2025

Naijablitznews

*Alerts residents as bandits flee military operations

By Francesca Hangeior

The Sokoto State Government has issued a warning to residents to remain vigilant as military operations against bandit terrorists intensify in the eastern part of the state and surrounding areas.

In a statement signed by the Special Adviser to Governor Ahmed Aliyu on Security Matters, retired Colonel Ahmed Usman, the government highlighted the success of the ongoing joint military operations, which have left the bandits disorganised.

The statement explained that multiple terrorist enclaves have been destroyed, dozens of bandits neutralised, and hundreds of kidnapped victims rescued.

The statement urged residents to be cautious and report any suspicious activities in their communities.

“As security forces increase pressure on the bandits, some of them are fleeing to other areas with injured members. We are raising awareness to ensure our people remain alert, as these bandits may attempt to hide in villages or seek medical treatment at local clinics under disguise,” the statement read.

The government reiterated its commitment to working with security agencies to restore peace and stability in the state, adding that residents were encouraged to play an active role by reporting unusual activities to the authorities to support the ongoing efforts to secure the region.

“This proactive measure aligns with the governor’s nine-point agenda to create a safer and more economically viable Sokoto State.

“The government remains determined to work collaboratively with security operatives to protect citizens and maintain peace in the state,” the statement concluded.

News

Families weigh risk of sending kids to school over Trump immigration crackdown

Published

37 minutes ago

January 22, 2025

Naijablitznews

By Francesca Hangeior

As President Donald Trump cracks down on immigrants in the U.S. illegally, some families are wondering if it is safe to send their children to school.

In many districts, educators have sought to reassure immigrant parents that schools are safe places for their kids, despite the president’s campaign pledge to carry out mass deportations. But fears intensified for some when the Trump administration announced Tuesday it would allow federal immigration agencies to make arrests at schools, churches and hospitals, ending a decades-old policy.

“Oh, dear God! I can’t imagine why they would do that,” said Carmen, an immigrant from Mexico, after hearing that the Trump administration had rescinded the policy against arrests in “sensitive locations.”

She plans to take her two grandchildren, ages 6 and 4, to their school Wednesday in the San Francisco Bay Area unless she hears from school officials it is not safe.

“What has helped calm my nerves is knowing that the school stands with us and promised to inform us if it’s not safe at school,” said Carmen, who spoke on condition that only her first name be used, out of fear she could be targeted by immigration officials.

Immigrants across the country have been anxious about Trump’s pledge to deport millions of people. While fears of raids did not come to pass on the administration’s first day, rapid changes on immigration policy have left many confused and uncertain about their future.

At a time when many migrant families — even those in the country legally — are assessing whether and how to go about in public, many school systems are watching for effects on student attendance. Several schools said they were fielding calls from worried parents about rumors that immigration agents would try to enter schools, but it was too early to tell whether large numbers of families are keeping their children home.

Missing school can deprive students of more than learning. For students from low-income families, including many immigrants, schools are a primary way to access food, mental health services and other support.

Tuesday’s move to clear the way for arrests at schools reverses guidance that restricted two federal agencies — Immigration and Customs Enforcement and Customs and Border Protection from carrying out enforcement in sensitive locations. In a statement, the Department of Homeland Security said: “Criminals will no longer be able to hide in America’s schools and churches to avoid arrest.”

Daniela Anello, who heads D.C. Bilingual Public Charter School in the nation’s capital, said she was shocked by the announcement.

“It’s horrific,” Anello said. “There’s no such thing as hiding anyone. It doesn’t happen, hasn’t happened. … It’s ridiculous.”

An estimated 733,000 school-aged children are in the U.S. illegally, according to the Migration Policy Institute. Many more have U.S. citizenship but have parents who are in the country illegally.

News

NLC Condemns 50% Telecom Tariff Hike, Call for Immediate Reversal

Published

40 minutes ago

January 22, 2025

Gloria Ikibah

By Gloria Ikibah

The Nigeria Labour Congress (NLC) has strongly opposed the recent approval of a 50 percent increase in telecommunication tariffs by the Federal Government through the Nigerian Communications Commission (NCC).

In a statement issued by NLC President, Comrade Joe Ajaero, the union described the hike as a “harsh burden” on Nigerian workers and the masses already grappling with severe economic challenges.

According to the NLC, the tariff hike disproportionately affects workers and ordinary Nigerians who rely heavily on telecommunication services for daily communication and work. The union noted that with the current minimum wage at ₦70,000, the average worker would now spend approximately 15% of their salary on telecom charges, up from 10%. This, the NLC warned, is unsustainable for most Nigerians.

“The decision to approve a 50% increase in telecom tariffs, while neglecting the plight of citizens struggling with inflation and the rising cost of living, highlights the government’s prioritization of corporate profits over the welfare of its people,” the statement read.

The NLC further criticized the speed with which the government approved the tariff hike, contrasting it with the prolonged delay in implementing the recent minimum wage increase.

The union argued that this disparity reflects a lack of commitment to the welfare of Nigerian citizens and questioned when the government would prioritize the needs of the people it swore to protect.

While acknowledging the need for periodic tariff reviews, the NLC insisted that the approved 50% hike is excessive and called for immediate dialogue to consider a more reasonable increase. The union also called on the National Assembly to intervene and hold the executive accountable for policies that negatively impact the masses.

As part of its response, the NLC urged Nigerian workers and citizens to reject the tariff hike, warning that failure to reverse the decision could lead to collective action, including a nationwide boycott of telecommunication services.

“We will not allow policies that entrench poverty and inequality to go unchallenged,” the statement declared. “This is a fight for our dignity, our rights, and our survival as a people.”

The NLC reaffirmed its commitment to defending the interests of Nigerian workers and the masses, vowing to resist policies that undermine their welfare.

For now, all eyes are on the Federal Government and the NCC to see whether they will heed the calls for reconsideration or face the prospect of nationwide protests.