- Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) has asked for fair competition in the downstream industry
- The association revealed that the recent reduction in petrol prices by Dangote Refinery and NNPC has affected marketers
- It also disclosed that petroleum product regulators should encourage imports to make the market competitive and stop divestment from the industry
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Petroleum Product Retail Outlets Owners Association of Nigeria (PETROAN) has committed to promoting competitiveness and controlling price volatility in the downstream petroleum sector.
The development comes amid wide consultations with critical stakeholders such as the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and PETROAN.
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PETROAN reveals plans to continue petrol imports
The association stressed the need to establish frameworks encouraging price stability for about six months.
PETROAN revealed in a statement, urging the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) and other regulators to set up frameworks to stabilise petroleum product prices.
The marketers disclosed that the move would reduce investment risks, boost economic growth, and protect consumers' interests and Nigerians.
The association advocated for multiple supply sources, including the Dangote Refinery, NNPC refineries, modular refineries and imports.
According to a Guardian report, PETROAN said the supply sources would enhance competition, especially imports, allow for price comparisons with international market prices and protect local supply chains.
PETROAN praised the NMDPRA and the Federal Competition and Consumer Protection Commission for promoting healthy competition, asking the regulators to remain vigilant and prevent unfair competition.
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PETROAN says marketers are counting losses
It highlighted the need to encourage all local refineries to continue to produce to protect the economy, reduce dependence on imports, ensure job creation, and economic growth stimulation, improve energy security, and reduce vulnerability to international market volatility.
The association highlighted reduced petroleum product prices by major players, saying it resulted in massive losses, with marketers counting huge losses in billions of naira.
It disclosed that the development poses a fear of further divestment from the sector.
“Moreover, the threat of price fluctuations is affecting the businesses in the sector, which will lead to retrenchment. This will have far-reaching consequences, including job losses and economic instability,” PETROAN said.
Dangote, NNPC engage in price war
This came amid reported termination and renegotiation of the naira-for-crude sale agreement between the Nigerian National Petroleum Company Limited (NNPC), the Dangote Refinery, and other local refineries.
NNPC refuted reports that it terminated the naira-for-crude sale pact with local refineries, saying the deal was due for a review.
The national oil company said it sold 84 million barrels of crude to the mega Dangote Refinery under the deal as it gears up to ramp up production.
Dangote and NNPC had engaged in a price war, lowering petrol prices from N890 to N860 respectively, with Dangote Refinery appointing partners to sell its products nationwide.
Analysts say the crash in international crude oil prices is the reason for the price review by the two biggest players in the Nigerian downstream sector.
Dangote, NNPC, marketers may crash petrol prices again
Legit.ng earlier reported that petrol prices might drop further from the current N860 per litre sold by Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC).
This came amid the strengthening of the Nigerian currency in the foreign exchange market.
Oil prices dropped about two per cent to a 12-week low following reports that OPEC+ will proceed with the planned oil output increase in April.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
