The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concerns over significant financial losses incurred by petrol marketers following the recent downward review of fuel prices by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.
PETROAN spokesperson Joseph Obele, in a statement on Monday, highlighted the urgent need for price stability and healthy competition within Nigeria’s petroleum downstream sector to prevent market disruptions.
Fuel Price War Sparks Industry Concerns
Last Monday, NNPCL reduced its retail petrol prices from ₦945 and ₦965 per litre to ₦860 and ₦880 per litre in Lagos and Abuja, respectively, following a similar price cut by Dangote Refinery. This move has intensified competition between the two energy giants, raising fresh concerns over market stability.
In response to the fluctuations, PETROAN proposed a six-month price stability framework to mitigate the risks associated with volatile pricing.
“PETROAN is firmly committed to fostering a competitive and fully liberalized downstream sector. We urge the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take swift action in ensuring fair pricing. A stable market benefits industry players, government, and consumers alike,” the association stated.
Industry Losses and Investment Fears
The association lamented that the sudden price drop has led to massive financial losses, with marketers counting their losses in billions of naira. PETROAN also warned that the instability could discourage further investments, trigger job losses, and undermine economic growth.
“This unpredictability is making investors wary, while the threat of further price fluctuations could stall business expansion and lead to retrenchment across the sector,” PETROAN noted.
To address these concerns, PETROAN called for regulatory intervention to maintain price stability for at least six months, arguing that such measures would safeguard investments, ensure economic growth, and protect consumers from financial shocks.
Call for Competitive Market and Fuel Imports
Beyond price stabilization, PETROAN reaffirmed its commitment to promoting a competitive downstream sector, advocating for diverse fuel supply sources to prevent monopolies and enhance market efficiency.
The association emphasized the need for a balance between local refining and fuel imports, backing supply from NNPC refineries, Dangote Refinery, modular refineries, and international markets to ensure fair competition and pricing.
“We strongly advocate policies that dismantle barriers to entry, encourage fair competition, and prevent market dominance by any single entity. A diversified supply chain will not only provide better options for consumers but also drive economic growth,” PETROAN added.
Surging Petrol Imports Raise Further Questions
Meanwhile, recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s petrol imports surged by 100% in 2024, reaching ₦15.4 trillion—a development that has placed additional pressure on local refineries, including Dangote Refinery.
With the ongoing fuel price war and concerns over market sustainability, industry stakeholders are calling for urgent policy interventions to balance competition, investment security, and consumer protection in Nigeria’s petroleum sector.
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