The Nigerian Petroleum Products Retail Outlet Owners Association’s oil marketers have denounced the ongoing fuel price cuts, claiming that they are still counting losses.
PETROAN stated that a regulation that would require price changes to be made only after six months is necessary, even in the face of deregulation.
Joseph Obele, PETROAN Publicity Secretary, also reversed course and stated that imports should be promoted to abolish monopolies.
The price of Premium Motor Spirit (petrol) at the gantry was recently reduced from N890 per litre to N825 by the Dangote refinery.
As a result, the Nigerian National Petroleum Company Limited (NNPCL) was compelled to reduce its pump price to N860 per litre.
Regarding price stability, the association contended that abrupt increases in fuel prices can cause financial strain and uncertainty because they can affect transportation costs, food prices, and the cost of living in general.
The association emphasised that the abrupt price decline has caused enormous losses, with those impacted calculating their losses in billions of naira.
Given that investors are leery of erratic market conditions, this situation raises serious concerns about additional investment in the industry.
“Additionally, the sector’s commercial boom is being impacted by the prospect of price swings, which will undoubtedly result in layoffs. Numerous negative effects will result from this, such as job losses and unstable economic conditions.
“PETROAN suggested that regulatory bodies set up systems to promote price stability for a minimum of six months to address these issues.
“In the end, this strategy would support economic development and safeguard the interests of Nigerians and consumers by lowering the risk and uncertainty connected with investments in the industry,” the statement said.
PETROAN urged all parties involved—government agencies, regulatory organisations, and industry participants—to work together to create mechanisms that support price stability, such as clear pricing models, efficient regulation, and crisis-resilient strategic reserves.
There have been reports of several importers in Lagos lowering their pricing from N945 to N900 for petrol. It was discovered that this has resulted in losses since the importers are selling below their expenses.
Obele emphasised the downstream sector’s vital role in the country’s economy but also pointed out that it faces issues including pricing volatility, market monopolies, and unhealthy competition that can erode the sector’s foundations and our residents’ faith.
“The Petroleum Products Retail Outlets Owners Association of Nigeria has adopted a strong position on encouraging healthy competition and regulating price swings in the downstream sector following thorough consultation with important companies and stakeholders in the petroleum industry.
“In light of the substantial economic advantages local refineries provide to the nation, PETROAN promotes the need to avoid monopolies and make sure they prosper,” he said.
