By Tina Amanda
The National Headquarters of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reacted following a statement by Dangote Refinery’s CEO, who claimed his facility could meet local fuel demand and has 500 million liters of petrol awaiting purchase by marketers.
Dr. Joseph Obele, PETROAN’s National Public Relations Officer, while reacting to the statement to our Correspondent in Port Harcourt, stressed that merely inviting marketers to come and pick is insufficient without disclosing the price.
He pointed out that marketers need clear pricing details to compare alternatives and make informed choices, particularly when NNPC Retail is currently selling at 1,040 Naira per liter in Port Harcourt.
“The buying decision involves more than availability; price clarity is essential.
“Purchase decision is the last aspect of the process for buying decision. The buying decision process is a systematic process that involves problem recognition, information search, alternatives evaluation, and purchase decisions.
“The most important stage for buying decision is information search and alternative evaluation. Scholars of Marketing have described Customers as sugar ants, saying something about your product or price must attract a buyer to make a purchase decision.
“Retailers should come and pick Dangote said, but unfortunately he didn’t mention how much he will sell it to the Retailers. The Retail outlets owners are asking is, to pick for how much? He didn’t say anything about the price.
“The rate at which we are buying from NNPC is known to the general public. NNPC Retail is selling to us at #1,040 per liter in Port Harcourt. The energy that the CEO of Dangote Refinery used by saying we are not buying from him, such energy could have been used to announce his price.
“If he had announced a favorable or attractive selling rate at that press conference, such an announcement could have caused traffic at his facility by this hour.
“A businessman will abandon his previous buying source for a new location with the least discount granted by a new seller.
“At the National Headquarters of PETROAN, we have written series of correspondence with the intension to deal, until this hour there is no response towards our desire to meet with Dangote Refinery Management.
“PETROAN National President Dr. Billy Gillis Harry has on his own sent some emails to the management of Dangote Refinery requesting for the audience in view of having a strategic business meeting and Negotiation with the Refinery, all to no avail. It was surprising when the Chief Executive officer of the refinery accused marketers of not coming to pick.
“We are willing to pick from Dangote Refinery, likewise picking from NNPC Retail Ltd as usual and including Depot/Petroleum Products Marketers Association of Nigeria (DAPPMAN), but the core determinant factor for us in choosing where to buy and when to buy is the selling rate.”
Dr. Obele noted that PETROAN’s flexibility is not limited to any single supplier. In addition to purchasing from NNPC and DAPPMAN, PETROAN has applied for an import license from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with plans to secure foreign exchange at official rates, this, they believe, could lower PMS prices for Nigerian consumers.
The PETROAN spokesperson noted that the Dangote CEO’s recent comments about unsold inventory and challenges with regulatory processes indicate unresolved issues impacting the refinery’s operations. The refinery’s operational struggles, he warned, could deter potential investors in Nigeria’s downstream market.
“Regarding the inventory challenges as complained by the CEO of Dangote Refinery, it is unfortunate that some fundamental issues between the regulatory agencies are causing frustrations to the Business Operations of the $20 billion Refinery.
“Last time in the speech of the CEO of the refinery he said, that if he had known he wouldn’t have invested in the Refinery, in another speech he said, they should buy off his stake in the Refinery, and recently he said the inventory in stock is causing him losses. He complained that they are not buying from him, saying they prefer importing from the international market rather than buying from him.
“I think there could be salient fundamental issues which are yet to be resolved. The implication of the frustrations of Dangote Refinery is the fact that all his lamentations will pose a serious threat to potential investors.”
He added that the gradual entrance of competition, including the future operation of government-owned refineries and modular refineries, should lead to price reductions as competition intensifies.
“Price reductions are certain as competition peaks, but transparency from Dangote on pricing could accelerate this process and benefit consumers sooner.”
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