Oil marketers under the umbrella of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have strongly condemned the continuous reduction in fuel prices, warning that the instability is causing massive financial losses and threatening investment in the sector.
Despite the government’s push for deregulation, PETROAN insists on the need for a regulatory framework that mandates fuel prices remain unchanged for at least six months to prevent market volatility.
In a statement signed by PETROAN’s Publicity Secretary, Joseph Obele, the association also made a surprising U-turn—advocating for increased fuel importation to break monopolistic control over the market.
Recently, the Dangote Refinery reduced the price of Premium Motor Spirit (PMS) from N890 per litre to N825, prompting the Nigerian National Petroleum Company Limited (NNPCL) to follow suit by lowering its pump price to N860 per litre.
While this price reduction was expected to benefit consumers, PETROAN argues that the abrupt cuts have left marketers counting their losses, with billions of naira wiped out overnight.
“The sudden downward price review has resulted in massive losses, discouraging further investment in the sector. The fear of unpredictable market conditions is crippling confidence in the industry,” PETROAN stated.
The association further warned that price fluctuations threaten economic stability, with ripple effects on transportation costs, food prices, and general cost of living. If not addressed, they cautioned, it could lead to job losses, retrenchment, and sector-wide economic instability.
To tackle these challenges, PETROAN proposed that fuel prices be regulated and adjusted only after a minimum of six months.
This, they argued, would:
✔️ Reduce uncertainty for investors
✔️ Stabilize the economy
✔️ Prevent abrupt losses for marketers
✔️ Ensure price consistency for consumers
“Frequent changes in fuel prices discourage business growth, making it impossible for marketers to plan long-term,” Obele stated.
Beyond price stability, PETROAN also endorsed fuel importation, emphasizing that monopolies stifle the sector and lead to unfair pricing.
“After consultations with industry stakeholders, PETROAN firmly supports increased fuel imports to introduce healthy competition into the market. The presence of multiple suppliers—Dangote Refinery, NNPC refineries, modular refineries, and private importers—will ensure fair pricing and protect consumers,” the statement read.
PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to remain vigilant in preventing anti-competitive practices and unfair monopolies.
To ensure long-term sustainability, PETROAN called for:
✅ Increased investment in refineries, distribution networks, and storage facilities
✅ Fair market practices that allow new players to enter the sector
✅ Transparent pricing models to protect consumers from exploitation
“The government must prioritize building a resilient, competitive, and fair petroleum industry. Policies must be put in place to protect investors, marketers, and consumers alike,” PETROAN emphasized.
PETROAN reaffirmed its commitment to a fully liberalized and competitive downstream sector, urging the NMDPRA to act swiftly to ensure price fairness.
“We urge all industry stakeholders—government, investors, and consumers—to work together in shaping a stable, thriving petroleum industry. A strong, well-regulated market is crucial to Nigeria’s economic future,” the statement concluded.
PIONEER NEWS 