The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed its disappointment regarding the lack of transparency in the pricing of the Premium Motor Spirit (PMS) being offered by the Dangote Refinery.
When Dangote Refinery commenced its operations in the Nigerian market, there were hopes that its entry would contribute to lowering the escalating prices of petrol across the nation.
However, this expectation has not materialized since the refinery began its sales.
Instead, the refinery appears to have left the Nigerian National Petroleum Company Limited (NNPCL) to act as an intermediary—purchasing fuel from them and then selling it to other retail outlets.
During an interview on Channels Television’s breakfast show, The Morning Brief, PETROAN President Billy Gillis-Harris voiced the urgent need for improved communication between Dangote and the retail outlet owners, as well as other stakeholders involved in the industry.
“As I stand here speaking this morning, I have no idea what the price structure from Dangote is. At this juncture in Dangote’s entry into the Nigerian market, it is crucial for retail outlet owners like us to be informed about the prices at which Dangote is willing to sell to us. Unfortunately, this information has remained secretive until now,” Gillis-Harris stated.
He also noted that while the NNPC had provided a price template, it did not include specific details regarding the pricing from Dangote.
Gillis-Harris urged the Dangote management to foster open communication with all stakeholders in the business, emphasizing that input from various parties is valuable.
“This industry impacts many Nigerians, including retail outlet owners, marketers, and consumers, so there should be a level of transparency in business operations, even if it is a private entity. We take pride in having such a facility operating in Nigeria, but we need to see more clarity in their dealings,” he added.
In a related development, the NNPCL announced a price hike for petrol in major cities like Lagos and Abuja just the day before. The price at NNPC outlets in Lagos rose to ₦998 per litre, an increase of ₦150 from the previous price of ₦855, while the price in other locations surged from ₦897 to ₦1,030.
In response to this recent surge in petrol prices, Gillis-Harris linked it to the challenges associated with product delivery.
“What I can tell you is that whenever there are difficulties in getting products to market, and the capacity for NNPCL to absorb price shocks becomes overwhelming, they will undoubtedly pass on some of those costs,” he explained.
He reiterated that the final prices of petrol would ultimately be influenced by market dynamics.
