Fuel Price War: Marketers Lose Billions as PETROAN Pushes for Stability
The recent fuel price reductions by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery have left petrol marketers counting their losses in billions of naira.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) is now urging the government to implement a six-month price stability plan to protect businesses and investments in the downstream sector.
Massive Losses for Petrol Marketers
Last week, NNPC slashed its retail petrol prices from N945–N965 per litre to N860–N880 per litre in Lagos and Abuja.
This move came shortly after Dangote Refinery reduced its own pump prices to the same range, triggering intense competition.
However, while consumers welcomed the price drop, petrol marketers suffered heavy losses. PETROAN spokesperson Joseph Obele expressed concerns over the unpredictable market, warning that sudden fluctuations could discourage investment and lead to job losses.
“This situation poses a significant threat to future investments in the sector. The fear of price instability is forcing many businesses to reconsider their involvement in the fuel market. If this continues, it could lead to retrenchments and economic instability,” Obele stated.
PETROAN’s Call for Price Stability
To address these concerns, PETROAN is calling on regulators, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to step in and enforce a six-month price stability mechanism.
“PETROAN is committed to promoting healthy competition, full liberalization, and price stability in the petroleum sector. We urge the NMDPRA to take immediate action to ensure fair pricing.
A stable fuel price will reduce uncertainty, encourage investment, and protect both businesses and consumers.”
Backing Competition & Multiple Supply Sources
Beyond price stability, PETROAN is also advocating for multiple fuel supply sources to ensure a competitive market.
The association believes that relying solely on NNPC or Dangote Refinery could create a monopoly, harming both businesses and consumers.
“For a truly competitive market, we need multiple supply sources—including NNPC refineries, Dangote Refinery, modular refineries, and fuel imports.
This will foster fair pricing, encourage innovation, and ensure that Nigerian consumers benefit from a competitive marketplace,” the statement added.
Fuel Prices to Drop Further?
With the ongoing competition between NNPC and Dangote Refinery, experts predict that fuel prices may drop even further, possibly reaching N650 per litre in the coming months.
While this is good news for consumers, PETROAN warns that without a proper regulatory framework, such fluctuations could destabilize the market.
What Lies Ahead?
As the battle between NNPC and Dangote Refinery continues, the Nigerian fuel market remains unpredictable.
Will the government step in to regulate prices, or will market forces continue to dictate the cost of petrol?
What do you think? Should fuel prices be regulated, or should market competition determine the cost? Share your thoughts below!
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