The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has sounded the alarm over billions of naira in losses suffered by petrol marketers following recent price cuts by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.
According to PETROAN spokesperson Joseph Obele, the sudden reduction in petrol prices by the two major players has unsettled the petroleum downstream sector, creating fears of further investment losses and potential job cuts.
Last Monday, NNPC reduced its retail petrol prices in Lagos and Abuja from N945 and N965 per litre to N860 and N880 per litre, respectively. The move was in response to Dangote Refinery’s price slash to the same levels across its retail outlets. The price war between the oil giants has led to significant revenue losses for marketers.
“PETROAN remains committed to the Petroleum Industry Stakeholders Forum’s vision for healthy competition, full liberalization, and price stability in the downstream sector,” Obele stated. “We urgently call on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene and ensure fair pricing to protect investors and consumers alike.”
The association warned that sudden price changes discourage investments in the sector, leading to economic instability, potential business closures, and job losses. To address these challenges, PETROAN proposed implementing a six-month price stability mechanism to reduce investment risks and promote sector growth.
PETROAN further emphasized the need for a diversified supply chain to boost competition. It advocated for various supply sources, including NNPC refineries, Dangote Refinery, modular refineries, and imports, to prevent monopolies and foster a fairer market environment.
“Healthy competition drives innovation, enhances service quality, and ensures consumers can access affordable products,” Obele noted. “Creating a competitive downstream sector is essential for economic growth and consumer protection.”
The association also stressed the need for policies that dismantle barriers to entry, promote fair practices, and prevent market dominance by any single entity. According to data from the National Bureau of Statistics, Nigeria’s petrol imports surged by 100 percent to N15.4 trillion in 2024, underscoring the importance of a stable and diversified market.
PETROAN urged industry stakeholders, regulators, and the government to collaborate toward creating a stable and prosperous downstream sector that benefits the nation’s economy.
