Marketers Not Happy With NNPC, Dangote's Sudden Fuel Price Reduction to N860 per Litre, Give Reasons
- Oil marketers under PETROAN have condemned the fluctuations in petrol prices by the Dangote refinery and NNPC
- They warned that continued fluctuations are causing massive losses and discouraging investment in the sector
- The marketers are suggesting that the government implement a regulatory framework ensuring at least six months of price stability
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have condemned the persistent fluctuations in petrol prices by the Dangote Refinery and the Nigerian National Petroleum Company (NNPC), warning that the instability is causing massive losses and discouraging investment in the sector.
Source: Getty Images
PETROAN has therefore called for a regulatory framework that mandates price stability for at least six months.
The demand by PETROAN follows a recent drop in ex-depot petrol prices by Dangote Refinery from N890 per litre to N825 per litre, prompting the Nigerian National Petroleum Company Limited (NNPC) to also cut its pump price to N860 per litre.
Speaking on the changes, PETROAN Publicity Secretary Joseph Obele in a statement said that the changes have created uncertainty among investors, who are wary of unpredictable market conditions, Punch reports.
His words:
“The sudden downward review of prices has resulted in massive losses, with affected marketers counting billions of naira in losses.
“This situation poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions.”
PETROAN also warned that volatile fuel prices could have ripple effects on transportation costs, food prices, and the overall cost of living, while job losses and economic instability may follow if the downward trend persists.
The association, which had previously resisted fuel imports, reversed its stance, saying imports should now be encouraged to break the market monopoly.
Obele said:
“A competitive downstream sector is not just beneficial but necessary."
He further advocated for a mix of supply sources including Dangote Refinery, NNPC refineries, modular refineries, and imports.
Source: Getty Images
Fuel prices and government role
Speaking further PETROAN secretary commended government agencies, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for promoting healthy competition but urged them to remain vigilant against unfair market practices.
He added:
“To achieve a stable and competitive market, regulatory authorities must dismantle entry barriers for new players and ensure no single entity dominates to the detriment of consumers.
“We believe that by working together, industry stakeholders, government, and consumers, we can create a vibrant, competitive market that benefits everyone."
Three companies get approval to construct new refineries
Earlier, Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved the construction of new refineries.
The companies approved to build the refineries are Eghudu Refinery Limited, MB Refinery and Petrochemicals Company Limited and HIS Refining and Petrochemical Company Limited.
The latest development is a welcome boost for Nigeria in its efforts to become self-reliant in petroleum products.
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Source: Legit.ng
