The Petroleum Products Retail Outlets Association of Nigeria (PETROAN), which represents oil marketers, has voiced dissatisfaction over the detrimental effects that the volatile prices of Premium Motor Spirit, commonly referred to as fuel, have had on their various companies around the nation.
The Nigerian National Petroleum Company (NNPC) Limited and the Dangote Petroleum Refinery recently engaged in a price war in which both companies lowered the pump price of petrol for both their partners and all of their outlets.
Billy Gilly-Harris, President of PETROAN, revealed this during his guest appearance on Channels Television’s Business Morning program on Tuesday, March 11, 2025.
According to Gilly-Harris, the survival of its members’ businesses may be in jeopardy due to the recent volatility in petrol prices. On February 26, 2025, the Dangote Petroleum Refinery’s management declared that the ex-depot price of gasoline would drop from ₦890 to N825 per litre, with effect from February 27 of the same year. It stated that this strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
As the competition in the downstream sector of the oil business heats up, the NNPC responded by lowering the pump price of petrol sold at its locations nationwide on February 3, 2025.
Olufemi Soneye, NNPC’s Group Chief Corporate Communications Officer, responded to the development by stating that these changes are routine and reflect the impact of market forces. He pointed out that since the downstream industry was deregulated, the NNPC has continuously changed pricing in reaction to market conditions.
According to the head of PETROAN, an analysis of recent developments in the oil industry’s downstream sector showed how big the loss was and how likely it was that the majority of oil marketers would go out of business.
He went on to say: “In our consistently weekly reviews, we discovered that the size of the loss, and the possibility of most of us getting out of business, is glaring at us in the face. Because in today’s Nigeria, we have collaborative efforts being made between all the stakeholders, and we reach out to one another to know how the businesses are doing.
“As much as we are making efforts to make sure that Nigerians have product affordability from our end as the last mile in the industry, we also want to stay afloat and liquid.
“The challenge we have is that we buy products at a price today, and before the close of business, the price has reduced. We thought there should be a mechanism by which prices are analysed and ensure it doesn’t impact negatively on the industry.
“I have always said that every business can only survive by making some minimal profits that are commensurate to the price of paying the cost of doing business. We are fully aware that the international prices of crude oil and other related expenses are also being reduced. But when we invest to buy products at, say, N880, we are not going to sell at that price. And if such products become reduced to N840, N850, N860 or even N870 per litre, it becomes challenging how we will be able to recover our costs,” he added.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) were also urged by Billy-Harris to safeguard industry participants from the “sudden reduction” of petrol prices. He commented on pricing monopoly in the downstream industry, saying that while its members can import goods or purchase them from nearby refineries, it would not sell goods at the expense of PETROAN members’ ability to continue operating their operations, BrandSpur business and economy news desk reports.
He went on to say: “Yes, we have been at the forefront of always implementing what stakeholders agree. We can import our products. We also can buy locally refined products. But we see that prices consistently shift up or down, and there is no clear business consultation on how this should be done.
‘’That is why we said the NMDPRA and the consumer protection agency should swing into action and be able to work together with other stakeholders so that we can be able to have a stable market and a stable price,” he added.
