The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that allowing a single company to assert its dominance in Nigeria’s petroleum supply and distribution chain will not augur well for the economy, and called for an open and competitive market that guarantees affordable and transparent pricing.
PETROAN National President, Dr Billy Gillis-Harry, stated this while speaking at the second annual conference of the Association of Energy Correspondents of Nigeria (AECAF), which was held last week in Abuja.
The PETROAN chief, who applauded Alhaji Aliko Dangote for his courage in investing in the refinery, which he described as a source of pride to Nigeria, West Africa and Africa as a whole, said it would be fair to allow other players in the industry to be involved in the day-to-day activities of Nigeria’s oil and gas sector, thereby contributing to the country’s economic growth and Gross Domestic Product (GDP).
While calling for closer collaboration among upstream, midstream and downstream operators, Gillis-Harry said competition among refineries and product suppliers would not only drive market-based pricing but also improve consumers’ access to affordable petroleum products.
He said more operators were developing refineries that would increase local refining capacity and open the market to competition when completed, making reference to the 25,000-barrel-per-day Azikel Refinery in Bayelsa State and the BUA refinery, which is also under development.
Gillis-Harry said, “We appreciate and consistently thank God for somebody like Alhaji Aliko Dangote, who has the courage to be able to make this investment to make Nigeria proud, make West Africa a great subregion and Africa a great continent, and indeed become a player in resolving energy issues across the globe. So, please, Dangote has done quite a lot of things that are great and we want to encourage that consistent investment. But having said that, it’s important for 230 million-plus Nigerians to be involved in their day-to-day economic growth, and that is very critical. Because at the end of the day, it will take all 230 million-plus people to make our GDP much more resilient, much more feasible and much more impactful on our everyday lives.
“We have other refineries coming up. We have the 25,000 barrels per day Azikel Refinery that is coming up in Bayelsa and can easily increase to 200,000 barrels per day. We have the BUA refinery that is also coming up. We cannot afford one company holding the country to ransom, and that is the critical point that we must make. Because we easily get carried away: ‘Oh, I’m going to supply products for free.’ What type of thing is that? There are people who have bought tankers in this country, at least over 40,000 tankers. So, are they going to stay out now, doing no business? And these gentlemen are doing a great job that is keeping the country working. It’s very important for us to realise that.”
He added, “That is why I know, truly, in my conscience and my heart, I know that Dangote is doing a great job, but he needs to allow everybody to play together in the same field. I will encourage him to do so. We, as innocent, conscientious players in the industry, will continue to advocate for the marriage of different sources of petroleum products so that there will be competition, so we’ll be able to have market-effective pricing and ensure that you can all enjoy affordable prices.”
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