Petrol Station Owners Seek Help on Fuel Pricing in Nigeria, Make Proposal

• Petrol station owners have called on the federal government to keep fuel prices stable for six months
• The markets said that current price instability is affecting their business and creating market uncertainty
• PETROAN urged regulatory authorities to implement transparent pricing models and fair market policies

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.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is proposing a mechanism to encourage price stability for at least six months.

In a recent statement, PETROAN voiced its support for the diversification of petroleum product supplies, including imports and local refinery operations.

According to the association, healthy competition and the curbing of price fluctuations within the downstream sector were very important.

The statement read:

"To this effect, PETROAN advocates the importance of preventing monopolies and ensuring local refineries thrive, given their significant economic benefits to the country. Healthy competition is essential for fostering innovation, improving service delivery, and ensuring that consumers have access to affordable products.

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“When competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth. PETROAN firmly believes that a competitive downstream sector is not just beneficial but necessary."

Vanguard reports that the group, led by Billy Gillis-Harry, advocated for policies that facilitate multiple supply sources, such as the Dangote Refinery, NNPC refineries, modular refineries, and imports.

"We advocate policies that dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity can dominate the market to the detriment of consumers.”

Effect of fuel price changes

PETROAN also expressed concern over significant financial losses incurred by marketers due to sudden petrol price revisions, Punch reports.

These fluctuations, it warned, could deter future investments and lead to economic instability and job losses

It added:

“Moreover, the threat of price fluctuations is affecting the business boom of the sector, which will definitely lead to retrenchment.

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Marketers not happy with NNPC, Dangote’s sudden fuel price reduction to N860 per litre, give reasons

"This will have far-reaching consequences, including job losses and economic instability."

“To address these challenges, PETROAN proposed that regulatory authorities establish mechanisms to encourage price stability for at least six months. This approach will help reduce the uncertainty and risk associated with investments in the sector, ultimately promoting economic development and protecting the interests of consumers and Nigerians."

“We urgently urge NMDPRA to quickly swing into action to ensure fair pricing. We believe that by working together, industry stakeholders, government, and consumers, we can create a vibrant, competitive market that benefits everyone.”

Dangote announces new partner to sell its petrol

Legit.ng previously reported that Dangote Refinery announced Optima Energy as its latest partner for the sale of petrol across the country.

Optima Energy joins MRS Nigeria, Ardova PLC, and Hyden as the other partners working directly with Dangote to sell affordable fuel.

Additionally, it pledged to compensate oil marketers who previously purchased fuel at a higher price.

Read also

Petroleum product marketers kick against monopoly as Dangote, NNPC engage in price war

Also, Dangote said it would reimburse Nigerians with proof that its partners were sold above the rates advertised.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng