The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned against monopolies and unfair competition in the downstream petroleum sector, calling for policies that promote healthy competition and price stability.
In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN urged regulatory authorities to ensure fair market conditions that protect local refineries and prevent price manipulation. The association raised concerns over the recent sharp drop in petrol prices, which it said caused massive financial losses for retailers.
The price reduction was triggered by the Dangote Refinery’s ₦65 cut in Premium Motor Spirit (PMS) prices, prompting the Nigerian National Petroleum Company Limited (NNPCL) to lower its rates in response. Reports indicate that Dangote’s retail partners now sell petrol between ₦860 and ₦890 per liter, depending on the region, with Lagos having the lowest price. NNPCL quickly matched this price in Lagos, fueling what some observers see as a price war between the two major suppliers.
PETROAN described the sudden price cuts as disruptive, warning that billions of naira in losses could discourage further investment in the sector. “This situation poses a significant fear for further investment, as investors are wary of unpredictable market conditions,” Obele noted.
To prevent monopolistic control, PETROAN emphasized the need for a diverse supply base, including the Dangote Refinery, NNPC refineries, modular refineries, and petroleum imports. The association argued that allowing multiple suppliers would enhance competition, stabilize prices, and protect the market from exploitation.
This position contrasts with calls from some stakeholders to halt fuel imports, given the growing capacity of local refineries. However, PETROAN maintains that a combination of domestic production and imports would allow price comparisons with global markets and prevent any single player from dominating the industry.
Following consultations with stakeholders such as the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), PETROAN called on regulators like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to ensure a level playing field.
While advocating for multiple supply sources, PETROAN also urged greater support for local refineries, citing the benefits of increased domestic fuel production, reduced dependence on imports, job creation, economic growth, and improved energy security.
The association reiterated its stance on fostering a competitive market that encourages investment while preventing anti-competitive practices that could harm retailers and consumers alike.
