News
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
No going back on forex, subsidy reforms – Finance minister
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says there is no going back on the current administration’s reforms in the forex and oil and gas sectors.
Edun made this known when he received the newly assigned Minister of State for Finance, Doris Uzoka Anitez at the Ministry’s headquarters, on Monday.
“Nigeria now have a foreign exchange rate that is market based and also a deregulated oil market pricing which are two reforms that are long overdue over many decades that President Tinubu is currently implementing.
“Therefore as co-ordinating minister of economy, we stand on a threshold of a new dawn to implement these reforms and increase productivity, create jobs and reducing poverty and we are glad to have a minister of state that will help in actualizing the President’s reforms,” he said.
According to him, consultation and collaboration is key to achieving these key reforms both from public and private sector, stressing that ongoing economic policies are showing sustainability and sign of success.
The Minister of State for Finance, in her response, restated her commitment to work with stakeholders in both private and public sectors to ensure economic growth is materialized.
News
Rivers: Fubara fond of disobeying judgements, – Amaewhule-led Assembly
The Martins Amaewhule-led House of Assembly in Rivers State said Governor Siminialayi Fubara has a penchant to disobey courts’ judgements and constitutional provisions.
This is as the lawmakers also vowed to make Fubara’s appointees and permanent secretaries aiding him to circumvent the law have their date with the law.
They stated this during their 65th sitting on Monday in the legislative quarters.
In a statement by Martin’s Wachukwu, Special Assistant on Media to the Speaker, Martins Amaewhule, said the lawmakers reviewed the governor’s actions while deliberating on the recent judgement of the Federal High Court, Abuja Division.
The state legistators comnended the verdict of Justice J.O. Abdulmalik barring government from withdrawing from the Consolidated Revenue Fund of the State, until the 2024 Appropriation Bill is presented before a properly constituted Assembly describing it as a sound and well considered ruling.
The statement also pointed out that the Assembly on 15th July, 2024 deliberated and resolved on the continuous refusal of Fubara to present the 2024 Rivers State Appropriation Bill to the House.
The lawmakers then took the decision to write to the governor to shut down on expenditure pursuant to Section 122 of the 1999 Constitution.
Enabled by its resolution, the House and Amaewhule filed an action before the Federal High Court to determine whether Fubara could expend or continue to expend from the Consolidated Revenue Fund of the State without a valid 2024 Appropriation Law by the State House of Assembly.
The lawmakers prayed the court to invoke the consequences of such constitutional breach by ordering the Central Bank of Nigeria, the Accountant- General of the Federation, some Money Deposit Banks among other defendants to stop the release of moneys or permit the withdrawal of Rivers State funds until Fubara complied with the Constitution which he swore to uphold; and the court decided in favour of the House and the Speaker.
Commenting on the judgement, Amaewhule said, “Since 1st of July, 2024, Governor Fubara has been spending moneys of the State without approval hence the declaration of the shutdown of expenditure.
“Yet, the Governor in his characteristic manner of disobeying judgements of Courts, the Constitution of the Federal Republic of Nigeria and extant laws has continued to circumvent the Law with the aid of Permanent Secretaries, and some individuals who parade themselves as Commissioners. They will certainly have a date with the Law”.
News
NAF Airstrikes neutralize ISWAP commander, dozens of others
The Nigerian Airforce says its airstrike has neutralized 50 terrorists, including a high-ranking ISWAP commander known as Bashir Dauda, during an operation in Marte Local Government
Air Commodore Olusola F Akinboyewa, Director, Public Relations and Information, Headquarters, Nigerian Air Force, in a statement on Monday night said the precision strikes focused on known ISWAP strongholds in the villages of Tumbun Daribiyar, Jubularam, Buluwa, and Tumbu Karfe, marking a major effort in the ongoing fight against terrorism in Nigeria’s Northeast.
It said an on-ground assessment confirmed that “approximately 50 terrorists, including a high-ranking ISWAP commander known as Bashir Dauda, were neutralized in the operation.”
” Additionally, an ISWAP supply depot in the Jubularam enclave, filled with a substantial cache of food and essential items like beans, millet, and rice, was destroyed, effectively severing a critical resource line for the terrorists.
“These successful air strikes, targeting personnel and logistics, underscore NAF’s ongoing commitment to supporting ground forces and enhancing joint efforts to decimate terrorist strongholds in the region,” he said.
-
News24 hours ago
Just in : FG Makes Seven Major Appointments In Nigeria(List)
-
Politics24 hours ago
APC Slams Seyi Makinde Over 2027 Presidential Ambition
-
News21 hours ago
FCT, Lagos, 25 others to face food crisis – Report
-
News21 hours ago
Nigeria ranks fifth globally in daily social media usage
-
Metro19 hours ago
Gunmen attack Abia RRS facility, kill one detainee
-
News24 hours ago
Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 4th November 2024
-
Metro23 hours ago
Fire reportedly guts Ajah market in Lagos, destroys goods worth millions of Naira
-
News9 hours ago
Govt official arrested for 400 s3xtapes with president’s sister, ministers’ wives, others