By Bunmi Yekini
In a bid to safeguard Nigeria’s economy and ensure fair pricing in the petroleum sector, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has taken a firm stance against monopolies and price instability. The association is calling for measures that will foster competition, stabilize fuel prices, and encourage investment in the downstream sector.
In a statement signed by Joseph Obele, National Public Relations Officer of PETROAN, the association emphasized the vital role the downstream sector plays in powering industries, transportation, and households across the country. However, PETROAN expressed concerns over market monopolies, price fluctuations, and the negative impact of recent sudden price reductions on stakeholders.
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PETROAN highlighted the importance of competition in ensuring innovation, fair pricing, and consumer choice. The association stressed that a diverse supply chain, including Dangote Refinery, NNPC refineries, modular refineries, and imports, is necessary to prevent market exploitation.
“We must dismantle barriers that hinder new players from entering the sector and ensure no single entity dominates to the detriment of consumers,” PETROAN stated.
The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for their efforts in fostering competition. However, PETROAN urged them to remain vigilant against unfair market practices.
Fluctuating fuel prices, PETROAN warned, have a direct impact on transportation costs, food prices, and the overall cost of living. The recent sudden downward price review has led to massive financial losses, with businesses counting their losses in billions of naira.
“The unpredictability of prices discourages investment in the sector and could lead to job losses and economic instability,” PETROAN cautioned.
To address this, the association proposed that regulatory bodies establish a six-month price stability mechanism to encourage investor confidence and protect consumers from sudden price shocks.
PETROAN called on policymakers to establish clear regulations, consumer protection measures, and investment-friendly policies to support a competitive and stable market. The association also urged the government to encourage investment in refinery infrastructure and promote sustainability initiatives in the sector.
“We urgently urge NMDPRA to swing into action to ensure fair pricing. A vibrant and competitive market will benefit industry stakeholders, the government, and consumers alike,” PETROAN stated.
The association reiterated its commitment to the Petroleum Industry Stakeholders Forum, emphasizing that collaboration among government agencies, regulatory bodies, and industry players is key to achieving a resilient and fair downstream sector.