The Petroleum Products Retail Outlets Association of Nigeria (PETROAN) has accused Dangote Refinery of operating in secrecy when it comes to setting the price of petrol.
The refinery, which is owned by billionaire industrialist Aliko Dangote, has been called out for not providing clear information on how it determines the price of Premium Motor Spirit (PMS), commonly known as petrol.
Billy Gillis-Harris, President of PETROAN, voiced his concerns during an interview on Channels TV, expressing frustration that, despite Dangote Refinery’s significance to Nigeria’s oil and gas industry, stakeholders like retail petrol outlets have been left in the dark about its petrol pricing structure.
“Regarding Dangote price, as I speak to you this morning, I don’t know what Dangote price is all about, and that speaks volumes. At this point, retail outlets like us should know the price input of Dangote, but they have kept that shrouded in secrecy up until now,” Gillis-Harris said.
This lack of transparency has raised concerns, not just within the petroleum retail sector but also among Nigerian consumers who are eagerly waiting to understand how the pricing will affect them.
Call for Transparency from Dangote Refinery
PETROAN represents a significant number of fuel retailers across the country. For these retailers, knowing the exact cost of petrol from the refinery is crucial for their business operations.
However, the Dangote Refinery has yet to provide any clear information on how its petrol prices are calculated.
This has led to growing frustration and concerns about the potential impact on the Nigerian fuel market.
Gillis-Harris stressed that while the Nigerian National Petroleum Company (NNPC) provided a general price template for petrol, the actual price input from Dangote Refinery remains a mystery.
“NNPC gave us a price template that also did not tell us the exact price input from Dangote,” he noted.
PETROAN’s president argued that for a private refinery with such importance to the nation’s economy, transparency in its operations is crucial.
He called on Dangote Refinery to open up communication with stakeholders, including retailers and consumers, to provide clarity on its pricing model.
“We will encourage Dangote to open up the space of communication, talk to stakeholders, get valuable inputs from everyone because it’s a business that involves Nigerians, retail outlet owners like us, and different consumers. There should be some level of business transparency, even if it’s a private business,” he added.
The Dangote Refinery, located in Lagos, is one of the largest privately-owned oil refineries in the world.
It has been widely hailed as a potential game-changer for Nigeria’s petroleum industry.
For years, Nigeria, despite being one of the world’s leading producers of crude oil, has struggled with refining capacity.
The country has had to rely heavily on imported refined products such as petrol and diesel, which has contributed to high fuel costs and the need for government subsidies.
The Dangote Refinery, with a capacity to refine 650,000 barrels of crude oil per day, is expected to significantly reduce Nigeria’s reliance on imported fuel.
This should, in theory, help stabilize fuel prices, ease pressure on the country’s foreign exchange reserves, and improve the overall supply of petroleum products to the Nigerian market.
However, the secrecy surrounding how petrol prices are determined at the refinery has created anxiety among retailers and consumers alike.
Diesel Prices Are Open, Petrol Pricing Remains Secret
Interestingly, while Dangote Refinery has been open about the pricing of diesel, it has not provided similar transparency for petrol pricing.
Gillis-Harris pointed out that diesel prices from the refinery are well known to retailers, and many have already begun patronizing the refinery for their diesel supply.
“I can tell you about their price for diesel because the diesel prices were made known to us. Most of us patronise them for diesel. But in the case of PMS (petrol), I don’t have any information,” he explained.
This lack of information on petrol prices has led to speculation within the industry.
Some believe that the refinery’s management might be keeping petrol prices secret for competitive reasons. Others feel that the company may be taking time to assess market conditions before releasing a final price structure.
Whatever the reason, stakeholders are urging the refinery to act swiftly and provide clarity, as this uncertainty is affecting business operations across the fuel retailing sector.
For many Nigerians, fuel prices are a significant concern. The cost of petrol affects almost every aspect of daily life, from transportation to the cost of goods and services.
High petrol prices can lead to inflation, which directly impacts the purchasing power of ordinary citizens.
In recent years, Nigeria has experienced periodic fuel price hikes, which have often led to public protests and discontent.
The Nigerian government’s removal of fuel subsidies earlier this year added another layer of complexity to the situation.
Without government subsidies to cushion the impact, any increase in the price of petrol from refineries like Dangote will likely be felt directly by consumers.
As a result, many Nigerians are hoping that the Dangote Refinery, with its massive refining capacity, will help bring some stability and lower prices in the long run.
However, this optimism can only be realized if the refinery operates with transparency and openness, particularly around how it sets its prices.
Petrol retailers are caught in the middle of this situation.
They rely on accurate and transparent pricing from refineries like Dangote to determine the prices they set at the pump.
Without a clear understanding of the refinery’s petrol pricing model, they face difficulties in running their businesses efficiently.
Moreover, if the refinery’s petrol prices are too high, retailers may be forced to pass these costs onto consumers, further fueling public frustration.
This is why PETROAN is pushing hard for transparency.
By having a clear price structure, retailers can plan better, manage their costs, and ensure that petrol is sold at reasonable prices to Nigerians.
The call for Dangote Refinery to open up about its petrol pricing is not just about business operations.
It is also about accountability.
Gillis-Harris made it clear that while the refinery is a private business, it is one that plays a significant role in Nigeria’s economy and the lives of its citizens.
As such, the company has a responsibility to operate in a transparent manner and engage with all stakeholders to ensure that the benefits of its operations are fully realized.
“We are so proud that we have such a facility operating in Nigeria, but we need to start to see the works,” he said.
