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

Published

3 weeks 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

See Photos of World’s Tallest and Shortest Women Meet for Afternoon Tea in London

Published

4 hours ago

November 22, 2024

Naijablitznews

The world’s tallest woman and the world’s shortest woman met for the first time this week, sipping tea from china cups — and bonding over what they have in common while celebrating their differences.

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Rumeysa Gelgi, from Turkey, stands at 7 feet and 0.7 inches, while Jyoti Amge, from India, is 2 feet and 0.7 inches.

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

“You’re so beautiful,” said Gelgi, 27. “Thank you — you too,” replied Amge, 30.

Their meeting, over afternoon tea at London’s Savoy Hotel on Tuesday, came ahead of Guinness World Records Day, which is held annually in November to mark record-breaking achievements and encourage people to attempt records. The pair have been honored as “World Record icons” in the 70th anniversary edition of the Guinness World Records book.

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“Meeting Jyoti for the first time was wonderful,” Gelgi said in a release Wednesday. “She’s the most gorgeous lady. I was waiting to meet her for a long time.”

Gelgi said the pair bonded over their love for makeup, jewelry and doing their nails.

Video footage showed them sitting down for tea, cakes and sandwiches stacked next to them, with the London Eye visible from the window.

Amge said in the release that she was “so happy to look up” and see the world’s tallest woman, whom she called “good-natured.” She added that it was difficult at times for the pair to make eye contact “due to our height difference.”

“Guinness World Records is all about celebrating differences,” its editor in chief, Craig Glenday, said in a statement ahead of Guinness World Record Day, which is on Thursday.

“By bringing together these two amazing, iconic women, they can share their perspectives on life with each other and, also, with us,” Glenday said.

Gelgi’s record-breaking height is due to a rare genetic condition called Weaver syndrome, which causes rapid growth, according to the National Organization for Rare Disorders.

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The primary symptom is growth and bone development that occurs faster than usual, making those affected taller than average. People with Weaver syndrome may have rigid muscles and difficulty extending their elbows or knees.

Gelgi used a walking aid for support during the pair’s meeting. Her case of Weaver syndrome was the 27th ever diagnosed and the first in Turkey, according to Guinness World Records.

Weaver syndrome is generally caused by changes in the EZH2 gene, according to the NORD, though the organization notes that some people with Weaver syndrome do not have a mutation in the gene.

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Amge, an actor who played the character of Ma Petite in the television series “American Horror Story,” has a genetic growth disorder that occurs in the early stages of fetal development, known as achondroplasia.

According to Johns Hopkins, the condition causes shorter bones, abnormally shaped bones and shorter stature. While the genetic defect can be passed from parent to child, in about 80 percent of cases, achondroplasia results from a spontaneous mutation that occurs in the developing embryo.

On Thursday, Gelgi shared photos on Instagram of the two exploring London despite the cold weather, posing side by side in front of Tower Bridge.

News

Speaker Abbas Decries Gross Inadequacy In Health Sector Despite Annual Allocation

Published

5 hours ago

November 22, 2024

Gloria Ikibah

By Gloria Ikibah

The Speaker of the House of Representatives, Reps. Tajudeen Abbas, has lamented that the health sector is still grossly inadequate and far below what is invested in other countries, despite the considerable amount is allocated annually by the Federal Government.

The Speaker also said alot more needs to be done if the life expectancy of the average Nigerian is to rise as well as a reduction in infant mortality.

Abbas stated this at a public hearing for four bills organised by the House Committee on Healthcare Services at the National Assembly Complex on Friday.

The Bills are “A Bill for an Act to to Amend the National Residency Training Act 2018”; “A Bill for an Act to Amend the National Insurance Authority Act 2021”; “A Bill to Amend the National Tobacco Control Act”; and “A Bill to Establish the Institute of Healthcare Service Administrators of Nigeria”.

The Speaker who was represented by Rep. Obordor Mitema, member representing Ogbia Federal Constituency of Bayelsa State, said it was for this reason that President Bola Tinubu, recognizing the urgency of this situation, prioritized healthcare as one of the pillars of his Renewed hope Agenda for Nigeria.

According to him, this was to revive the country’s healthcare sector and to ensure it receives the necessary support partnerships with the private sector within and outside Nigeria are being explored and hopefully in the not too distant future we shall see vast improvement.

He said, “Though the Federal Government appropriates a considerable amount yearly to the health sector, the amount is still grossly inadequate and far below what is invested in other countries.

“It is no longer news that despite the committed efforts, the health Sector has sadly over the years faced several challenges associated with outbound medical tourism, emigration of skilled healthcare workers, poor salaries and insufficient budgetary allocation.

“It is also sad to note that even though Nigeria has the highest Gross Domestic Product (GDP) in Africa the progress it has achieved in health has been rather slow and disappointing hence, more effort is needed if we are going to be at par with Western countries.

“Indeed more needs to be done if the life expectancy of the average Nigerian is to rise as well as a reduction in infant mortality.”

Speaker Abbas commended the Acting Chairman of the Committee, Rep. Bassey Akiba and the entire members of the committee for organizing this hearing.

He said it is a reflection of their commitment and support to do their quota towards helping Nigerians achieve not only better health but having access to better healthcare.

“We all know the significance of having a Health Sector that works. Western countries have taken bold steps to make their Health sector first class and second to none and we must do the same.

“The House Committee on Healthcare Services and other Health related Committees of the House of Representatives and indeed the National Assembly are fully committed to doing their part by initiating and amending laws that will always be people friendly with the aim of bringing succor and positive changes towards the Health sector in Nigeria.,” he said.

Rep. Akiba, said the healthcare sector in Nigeria over the past few years has gone through a myriad of challenges.

The challenges, according to him, includes the rising cost of healthcare services, financial challenges for providers, preventable medical errors, high mortality rates in both cases, lack of insurance coverage, the need for an improved mental health system, increased demand for personalized care, and a well-regulated health care system among others.

“As parliamentarians, it is our responsibility to discuss critical legislation that will not only shape the future of our nation’s health but impact possibly other people.

“Public hearings are essential because it is one of the crucial avenues used to sample opinions on any matter of public relevance and importance. Like I mentioned, there are four bills.

“Three of these bills are an amendment bill, three of the bills are an amendment bill, and one is an establishment bill. I wish to assure you all that as legislators and members of the Committee on Health Care Services.

“We are conscious of our constitutional and legislative resources towards the people. We are ready to partner with relevant stakeholders and support any genuine effort required to improve the healthcare system in Nigeria,” he said.

The Nigerian Medical Association (NMA) said, A Bill to Amend the National Residency Training Act should be dropped for more input by relevant stakeholders.

The Association said the Medical Residency Training Act was a bill primarily sponsored by Nigeria Association of Resident Doctors (NARD), an affiliate member.

First Vice President of the NMA, Dr Benjamin Oluwatosin, said It was a surprise to them that the primary constituency on the Bill was never contacted for input.

He urged that the Bill be stepped down to get more input of relevant stakeholders.

“So, in solidarity to our affiliate NARD and the validation of the Medical Residency Training Act we strongly advise that this bill be stepped down until every stakeholder involved and primarily NARD and then NMA is on the table from the very beginning,” he said.

Stakeholders who attended the hearing included representatives of the Nigeria Association of Resident Doctors, Medical and Dental Consultants Association of Nigeria, Committee of Chief Medical Directors among others.

News

Reps Demand Details Of Project Undertaken From Ministry Of Solid Minerals In 2024 Budget

Published

5 hours ago

November 22, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has directed the Ministry of Solid Minerals Development to provide details of all projects embarked on in the last year.

The Chairman Committee on Solid Minerals, Rep. Jonathan Gbefwi gave the directive when the Permanent Secretary in the Ministry, Mary Ogbe, appeared before it to defend the 2024 budget.

The committee members expressed displeasure with the inconsistencies in the presentation by the Permanent Secretary and resolved that all documents pertaining to all jobs carried out by the Ministry be made available before next Tuesday.

The lawmakers also queried the Ministry for not capturing most of the projects it embarked on in the presentation it made.

Gbefwi said, “We are expecting the budget and we cannot appropriate if we do not know the true status of the utilisation of what has been given you in 2024.

“We were quite detailed when we sent you then documents we required. You must provide details of all the projects, budget codes, budget items, appropriated amount, contractors, amount awarded, date of award, the status of the projects, the percentage with regards to performance, and the lot numbers among others.

“So all these individual items must be captured in detail in this document so that Nigerians would know how the money that has been appropriated has been utilised.

“There are a number of projects that were not captured in the presentation to the Committee. There was no explanation whatsoever.

“Don’t give us any half baked documents again. Every line must be adhered to. And give us the advertisment that was done, the code the contractors and everything. Even if it is before. FEC. Kindly put it in the remark section. Go and work on your documents again and make proper presentation. Let’s have a comprehensive submission,” he said.

Earlier the Permanent Secretary said a total of N25.05 billion was appropriated as expenditure outlay for the ministry in the 2024 budget.

“This comprised of 894.4 million as overhead cost and 23.15 billion as capital expenditure. The personnel cost of the Ministry was captured in the captured still in the Ministry of Steel Development for 2024 because the personnel separation had not been fully executed.

“On appropriation releases to the Ministry, she said for overhead, the total appropriation is N895, 441, 335. As at October 31st 2024, N745, 367, 779 had been released. Balances as at October 31, is N149, 073, 555. Percentage of releases of the appropriation for the overhead is 83 percent. Expenditure on release is the same amount that has been released. So there is a hundred percent performance. For capital appropriation it is N23, 150, 884, 863. Out of which N2, 724, 818, 977 has been released. 11 percent had been released and percentage performance is 100 percent.

“The Ministry achieved a 100 percent utilisation mainly of non debt recurrent expenditure and the percentage utilisation in capital as at the end October is 11 percent. This is because procurement process is still ongoing and some are awaiting FEC approval. With the bottom up cash plan, works must be executed before payment,” she said.