Petroleum product marketers have reaffirmed their support for the 650,000 barrels per day Dangote Refinery while calling on the Federal Government to guarantee adequate crude oil supply to all local refineries to meet domestic demand and ensure price stability in the downstream sector.
Speaking at the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) held in Abuja, the association’s President, Mr. Benneth Korie, emphasized the importance of fair competition and sustainable pricing practices. He urged the government to effectively manage the downstream sector to protect the survival of independent petrol station operators across the country.
Korie reiterated NOGASA’s unwavering support for domestic refining but warned that monopolistic practices could destabilize the market and threaten thousands of jobs in the sector.
“We have always supported the Dangote Refinery—100 percent. However, recent developments call for caution. We urge Mr. President to advise Dangote to operate within industry regulations. Our concern is not opposition to the refinery, but the need for inclusivity and fair play,” Korie said.
He also expressed concern over the refinery’s direct supply mechanism, suggesting that certain decisions may be driven by individuals lacking operational knowledge of the downstream sector, potentially leading to flawed strategies.
Echoing similar sentiments, Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned against the emergence of a monopolistic structure in the downstream oil market. He called on the government to allocate at least one million barrels of crude oil to local refineries to guarantee regular supply for domestic consumption.
Dr. Gillis-Harry noted that retail outlet operators are currently losing as much as ₦80 per litre due to sharp and unanticipated price fluctuations.
“Yesterday, some products were sold at ₦817 per litre, leading to substantial losses for retailers. This kind of price penetration strategy is aimed at pushing smaller operators out of business. If not checked, it will lead to the closure of many outlets and significant job losses,” he warned.
He described the situation as a deliberate move to dominate the market by undercutting prices to gain larger market share at the expense of smaller players.
Meanwhile, Mr. Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), disclosed that industry stakeholders have been engaged in intensive deliberations to ensure product availability, affordability, and quality.
“Our priority is the welfare of the average Nigerian. That’s what has driven our discussions in the past week. We are working tirelessly to make sure that petroleum products remain accessible and fairly priced,” Adewole said.
The developments come amid growing concerns among marketers and retail operators over the market influence of the Dangote Refinery, which began domestic supply earlier this year. Stakeholders have called for increased dialogue and regulatory oversight to preserve the competitive landscape and safeguard jobs within the sector.
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