… claims sudden fuel price drop triggers billions in losses for marketers
… calls for fuel imports to curb monopoly in market
… seeks NMDPRA, FCCPC intervention to protect marketers
Oredola Adeola
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concern over the continuous reduction in fuel prices by Dangote Refinery, warning that it could lead to market monopoly and significant losses for fuel marketers.
Joseph Obele, PETROAN’s Publicity Secretary made this known in a statement released on Monday, as part of concern over the sudden downward review of prices, which he said has resulted in massive financial losses for marketers, with losses amounting to billions of Naira.
Dangote Refinery recently reduced the price of Premium Motor Spirit (PMS) from N890 to N825 per litre at the gantry, while NNPC also lowered its pump price to N860 per litre, a move that marketers say has resulted in significant losses.
The association called for an end to what it described as a monopolistic trend that undermines competition and threatens the viability of fuel marketers.
“The sudden downward review of prices has resulted in massive losses, with those affected counting their losses in billions of Naira.
“This situation poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions,” PETROAN stated.
The association explained that volatile fuel prices have a ripple effect on the economy, impacting transportation costs, food prices, and the overall cost of living.
PETROAN warned that unchecked price fluctuations could lead to job losses and economic instability.
Speaking on measures to address the concern, PETROAN proposed regulatory measures to ensure price stability.
The association urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to remain vigilant in preventing unfair competition practices.
The association suggested that fuel prices should only be adjusted every six months to mitigate the financial strain on marketers and consumers alike.
It also called for a collaborative approach among stakeholders, including government agencies and industry players, to implement mechanisms that promote price stability.
“We advocate for policies that dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity can dominate the market to the detriment of consumers,” the statement read.
PETROAN has called for the government to facilitate fuel imports to prevent a monopoly in the downstream sector.
The association recommends a competitive downstream sector through multiple supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports.
According to the association, allowing competition to thrive would lead to better consumer choices and contribute to economic growth.
“PETROAN firmly believes that a competitive downstream sector is not just beneficial but necessary.
“We advocate for a multiplicity of supply sources, allowing for comparisons with international market prices and protecting the local market from exploitation,” Obele stated.
The association also recommended investment in infrastructure to support the downstream sector, including refineries, distribution networks, and storage facilities.
“We believe that by working together—industry stakeholders, government, and consumers—we can create a vibrant, competitive market that benefits everyone.
“Let us unite in our efforts to ensure that the downstream sector not only meets the needs of today but also paves the way for a sustainable and prosperous future,” the PETROAN’s spokesperson stated.
