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Petrol Pricing: Dangote trying to suppress competition, Petrol sellers allege
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
Breaking: Atiku emerges new Deputy Clerk to National Assembly
Sokoto-born seasoned technocrat, Mr. Ibrahim Atiku has been appointed as Deputy Clerk to the National Assembly (DCNA), with effect from February 2, 2025.
This was contained in a letter dated 19th December, 2024 and signed by the Executive Chairman, National Assembly Service Commission (NASC), Engr. Ahmed Kadi Ahmshi.
Ahmshi said the decision was taken during the just concluded 616th Meeting of the Commission, held on Thursday, 19th December, 2024; in recognition of his “hard work” and “administrative competence”.
“The National Assembly Service Commission, at its 616th Meeting held on Thursday, 19th December, 2024, approved your appointment as Deputy Clerk to the National Assembly with effect from 2nd February, 2025.
“This Appointment is in recognition of your hard work and administrative competence. It is therefore expected that you will continue to uphold the confidence reposed in you.
“While congratulating you on your appointment to this exalted position, please accept assurances of our highest esteem”, the letter reads.
Until his appointment, Mr. Atiku was the Director, Finance and Account, House of Representatives, in National Assembly.
He is an Alumnus of Usman Dan Fodio University, Sokoto, and fellow of the Nigerian Institute of Management. Atiku also obtained a Masters degrees in legislative studies as well as a Ph.D. in Legislative Studies.
Atiku also attended various courses home and abroad, among them are, the National Institute for Legislative and Democratic Studies (NILDS), Harvard University, USA, JF Kennedy School of Government USA, Duke University USA, West African Institute of Finance and Economic management, (WAIFEM), Harvard Business School USA, RIPA International UK. among others.
Recall that the NASC had last month, approved the appointment of Barr. Kamoru Ogunlana as Clerk to the National Assembly (CNA).
Both Ogunlana and Atiku are billed to resume their respective offices Feburary 2, 2025, when the current occupants of the offices shall be due for retirement.
News
Jubilation as Gov Mutfwang approves 13th month salary
The governor of plateau state, Caleb Mutfwang has in his passionate commitment to the welfare of public and civil servants in the State, approved that the 13th-month salary be paid to bring a more joyful Yuletide to civil servants in the state.
Governor Mutfwang in a statement by his Director of press and public Affairs, Gyang Bere also directed the swift payment of end-of-the-year bonuses for public and civil servants in the State.
It was gathered that this is the first time in Plateau’s history that the state government is paying workers a 13th-month salary.
This move is a testament to Governor Mutfwang’s desire to implement policies that enhance working conditions for government workers.
The Governor wishes all workers Merry Christmas and a prosperous New Year in advance.
News
Stampedes: You’ve Weaponized Poverty on Nigerians – HURIWA Tells Tinubu, State Govs
The Human Rights Writers Association of Nigeria (HURIWA) has expressed grave concern over the spate of deadly stampedes occurring across the country, attributing the tragedies to the government’s failure to address worsening economic conditions.
The advocacy group accused both federal and state governments of “weaponizing poverty,” creating an environment where desperate citizens now risk their lives scrambling for basic necessities that were affordable just months ago.
The group condemned the most recent stampede in Maitama, Abuja, where ten individuals, including four children, lost their lives during a food distribution exercise at Holy Trinity Catholic Church. Similarly, the group decried the crowd crush at a school fair in Ibadan, which claimed the lives of at least 35 children, and the stampede in Okija, Anambra State, where multiple casualties were recorded during the distribution of palliatives.
HURIWA lamented that these stampedes are the result of severe hunger and deprivation fueled by skyrocketing inflation, poor economic policies, and the weaponization of poverty.
“Nigerians are dying while rushing for staple foods that were affordable just a few weeks before President Bola Ahmed Tinubu took office.
The government’s inability to implement effective economic policies has pushed millions into desperation,” the group stated.
The Maitama incident, which occurred during a charitable outreach to the vulnerable and elderly, claimed ten lives and left eight others injured. In Ibadan, the deaths of 35 children at a school fair organized by the Wings Foundation and Agidigbo FM Radio shocked the nation, while the stampede in Anambra State highlighted the peril of poorly organized relief efforts in a country where millions live in poverty.
According to HURIWA, the removal of fuel subsidies without adequate cushioning measures has exacerbated the cost of living crisis, forcing many Nigerians into extreme poverty.
With over 133 million Nigerians classified as multi-dimensionally poor, according to recent reports, the group noted that hunger and deprivation have reached unprecedented levels.
“This government has turned poverty into a weapon, creating a situation where citizens are dying to secure basic sustenance. This is not governance; it is a tragedy,” HURIWA asserted.
The association emphasized that these recurring stampedes are symptomatic of a deeper crisis in Nigeria’s socio-economic fabric. It warned that the country is dangerously close to the brink of becoming a failed state. “When citizens die in droves just to access food, it is clear that the state is failing in its primary responsibility of safeguarding the lives and welfare of its people,” HURIWA said.
The advocacy group criticized President Tinubu’s administration for implementing poorly thought-out policies that have worsened the economic situation. It pointed out that the rising cost of staple foods, transportation, and other essential goods has left millions unable to meet basic needs.
“Before this administration, staple foods like rice and garri were within reach for the average Nigerian. Today, these have become luxury items, accessible only to a few,” HURIWA noted.
The association also accused state governments of compounding the problem by failing to prioritize grassroots development and welfare. It cited instances where poorly organized charitable events and palliative distributions have led to fatal stampedes, as seen in Anambra and other states.
HURIWA called for an immediate review of economic policies at both federal and state levels, urging leaders to prioritize the welfare of citizens over political and personal gains. “Governments must stop paying lip service to poverty alleviation and take real steps to address the root causes of hunger and deprivation,” the group stated.
The association proposed several measures to prevent future tragedies and address the underlying causes of the current crisis. These include the immediate implementation of comprehensive social safety net programs to provide food, healthcare, and financial assistance to vulnerable populations. HURIWA also called for massive investments in agriculture to increase food production and reduce dependency on imports.
Also, the group urged the federal government to introduce tax relief measures for low-income earners and small businesses to ease the economic burden. It also advocated for the creation of job opportunities through public works programs and partnerships with the private sector.
HURIWA stressed the need for better coordination of relief efforts to prevent overcrowding and ensure safety during palliative distributions. It called on event organizers to collaborate with local authorities and law enforcement agencies to manage large crowds and maintain order.
The advocacy group further emphasized the importance of accountability and citizen participation in governance. It urged Nigerians to demand transparency and hold their leaders accountable for policies that impoverish the masses.
HURIWA also called on President Tinubu’s administration to reverse policies that have exacerbated poverty and introduce people-centered reforms to rebuild public trust.
“This government must realize that the survival of its people is non-negotiable. Urgent steps must be taken to address the root causes of these tragedies and prevent Nigeria from sliding further into chaos,” the group stated.
As the holiday season approaches, HURIWA appealed to wealthy individuals and organizations to step up their philanthropic efforts to assist the less privileged. However, it stressed the need for such activities to be well-coordinated to avoid further tragedies.
The group reiterated its warning that Nigeria is on the verge of a socio-economic collapse. It called on all levels of government to act decisively to reverse the trend and restore hope to the millions of Nigerians struggling to survive.
“The lives lost in Abuja, Ibadan, Anambra, and elsewhere are a grim reminder of the cost of inaction. The government must stop weaponizing poverty and take immediate steps to address the root causes of this crisis. Failure to act now will only push Nigeria further toward the precipice of a failed state,” HURIWA declared.
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