Oil marketers in Nigeria have strongly criticized the continuous reduction of fuel prices, warning that it is causing significant financial losses and discouraging investment in the sector. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for price stability, recommending that fuel prices should only be adjusted every six months to protect businesses and ensure economic stability.
Marketers Count Losses Amid Falling Prices
The latest price reduction by Dangote Refinery, which lowered the cost of Premium Motor Spirit (PMS) from ₦890 to ₦825 per litre, forced the Nigerian National Petroleum Company Limited (NNPC) to drop its pump price to ₦860 per litre. However, this sudden drop has left many marketers struggling.
“The sudden downward review of prices has resulted in massive losses, with those affected counting their losses in billions of naira,” PETROAN’s Publicity Secretary, Joseph Obele, said in a statement.
He warned that if prices keep fluctuating unpredictably, it could scare off investors and lead to job losses. “The threat of price fluctuations is affecting the business boom of the sector, which will definitely lead to retrenchment,” he added.
Calls for Price Regulation and Stability
To address these challenges, PETROAN is advocating for price stability through regulatory measures.
Obele said, “We propose that regulatory authorities establish mechanisms to encourage price stability for at least six months. This will help reduce uncertainty and risk associated with investments, promote economic development, and protect consumers.”
The group also called for better collaboration between stakeholders, including government agencies, regulators, and industry players, to ensure price stability. PETROAN suggested adopting transparent pricing models, implementing effective regulations, and creating strategic fuel reserves to manage price shocks.
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Backing Fuel Imports to Encourage Competition
Despite previous opposition to fuel imports, PETROAN has now shifted its position, saying that importation should be encouraged to prevent monopolies and promote fair competition.
“We advocate for a multiplicity of supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports,” Obele stated. “This diverse range of sources will foster competition and allow comparisons with international market prices, protecting the local market from exploitation.”
He stressed the importance of healthy competition in the petroleum sector, saying, “When competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth.”
Marketers Selling Below Cost
The rapid changes in fuel prices have also affected private importers, who are now selling below their costs. Some importers in Lagos, who previously sold petrol for ₦945 per litre, have had to lower their prices to below ₦900, resulting in financial losses.
PETROAN believes that without strong regulations, some market players may be forced out of business. “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,” Obele said.
Regulators Urged to Act
The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for their efforts in promoting competition. However, it urged them to remain vigilant against unfair market practices.
To ensure a stable and competitive market, PETROAN called for clear regulations that apply to all players. It also emphasized the need to protect consumers from unfair pricing and ensure access to quality fuel at reasonable prices.
“Infrastructure investment is key to supporting the downstream sector, including refineries, distribution networks, and storage facilities,” Obele added.
Commitment to a Stable Petroleum Sector
PETROAN reaffirmed its commitment to fostering a strong and fair petroleum market.
Obele said, “We urgently urge NMDPRA to quickly swing into action to ensure fair pricing. By working together—industry stakeholders, government, and consumers—we can create a vibrant, competitive market that benefits everyone.”
The association expressed hope that with collaboration and sound policies, Nigeria’s fuel sector can become more resilient and sustainable. “Let us unite to ensure that the downstream sector not only meets the needs of today but also paves the way for a prosperous future,” the statement concluded