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 petrol, have had on their various companies around the nation.
This follows the recent pricing battle between the Dangote Petroleum Refinery and the Nigerian National Petroleum Company (NNPC) Limited, in which both oil companies lowered the pump price of petrol for their partners and all of their stores.
Billy Gilly-Harris, the President of PETROAN, revealed this during his guest appearance on the Business Morning program on Channels Television on Tuesday, March 11, 2025.
According to Gilly-Harris, the recent volatility in petrol prices may threaten the survival of its members’ businesses.
Background
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, effective February 27 of the same year.
In addition to supporting President Bola Ahmed Tinubu’s economic recovery agenda by easing the financial burden on the Nigerian people, it said that this deliberate pricing adjustment is intended to give Nigerians the much-needed respite they need in the lead-up to Ramadan.
Oil Marketers Could Be Put Out Of Business
According to the head of PETROAN, an analysis of recent developments in the oil industry’s downstream sector showed the size of the loss and the likelihood that the majority of oil marketers would go out of business.
Billy-Harris stated, “In our consistently weekly reviews, we discovered that the size of the loss and the possibility of most of us going out of business are glaring at us in the face. Because in today’s Nigeria, collaborative efforts are 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 ensure 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 negatively impact 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.”
Oil Marketers Urge NMDPRA, FCCPC To Stop Petrol Price Cut
Billy-Harris also called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to safeguard industry participants from the “sudden reduction” of petrol prices.
Regarding pricing monopolies in the downstream industry, Gilly-Harris stated 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.
He said, “Yes, we have always been at the forefront of implementing what stakeholders agree on. We can import our products. We can also 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.”
What To Note
PETROAN’s spokesperson, Joseph Obele, had previously called for healthy competition and cautioned against monopolies and unfair competition in the downstream oil sector.
Obele asked regulatory bodies to encourage price stability and strong competition in the nation’s downstream petroleum industry to avoid monopolies and safeguard regional refineries.
He underlined the importance of having a variety of supply sources, including imports, NNPC refineries, modular refineries, and the Dangote Refinery.
