The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about the state of Nigeria’s downstream petroleum sector, highlighting the urgent need for healthy competition and price stability to sustain economic growth and protect consumers.
The Need for a Competitive Market
PETROAN has reiterated that a competitive petroleum market is crucial for the economy. The association believes that monopolistic control of the market undermines consumer trust and limits economic benefits. To foster fair competition, PETROAN advocates for multiple supply sources, including:
- Dangote Refinery
- NNPC-owned refineries
- Modular refineries
- Fuel imports
By diversifying supply, PETROAN argues that local refineries will remain competitive against international market prices, preventing exploitation and encouraging investment. The association has urged regulatory agencies, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC), to enforce fair competition rules and ensure no single entity dominates the sector.
Petrol Price Fluctuations and Their Economic Impact
PETROAN has expressed concerns over volatile fuel prices, which have led to significant financial losses in the sector. The recent sudden price reductions have resulted in losses worth billions of naira, causing uncertainty for investors and threatening job security in the industry.
The association warns that the instability in fuel prices could lead to:
- Retrenchment of workers
- Reduced investment in the sector
- Increased cost of living for Nigerians
To mitigate these risks, PETROAN has called for price stability mechanisms that would ensure fuel prices remain predictable for at least six months. The association argues that predictable pricing will encourage investments, reduce financial risks, and protect consumers from price shocks.
Regulatory Reforms for a Stronger Downstream Sector
PETROAN has urged the Nigerian government and regulatory bodies to implement stronger policies that promote a liberalised, transparent, and sustainable downstream sector. The association has outlined key policy recommendations, including:
1. Strengthening Market Regulations
PETROAN calls for the enforcement of clear, fair, and transparent rules that govern the petroleum market, ensuring that all players operate under the same standards.
2. Consumer Protection
The association advocates for consumer-friendly policies that prevent price exploitation and guarantee access to quality petroleum products at fair prices.
3. Investment in Infrastructure
PETROAN urges the government to expand investments in refinery infrastructure, distribution networks, and storage facilities, which will improve efficiency and reduce bottlenecks in the sector.
4. Sustainable Energy Practices
The association encourages environmentally friendly policies to ensure the petroleum industry operates in a sustainable manner, balancing economic growth with environmental responsibility.
PETROAN’s Commitment to Industry Progress
PETROAN reaffirmed its commitment to the Petroleum Industry Stakeholders Forum, where it continues to champion full liberalisation, fair competition, and price stability in the downstream sector. The association is calling on the NMDPRA to take swift action in enforcing fair pricing mechanisms that will stabilise the market.
“By working together industry stakeholders, government agencies, and consumers we can create a vibrant and competitive petroleum market that benefits everyone,” PETROAN stated.
PETROAN’s call for reform underscores the critical role the downstream sector plays in Nigeria’s economy. With stronger competition policies, price stability mechanisms, and regulatory oversight, the industry can attract investments, protect jobs, and ensure fuel affordability for all Nigerians.
As Nigeria navigates its energy transition, PETROAN believes that collaboration among stakeholders will shape a resilient, fair, and sustainable petroleum industry for the future.
Dr Joseph Obele
National Public Relations Officer (PRO), PETROAN
