Oil marketers under the aegis of the Petroleum Products Retail Outlets Association of Nigeria has raised concerns over the impact of unstable petrol prices on their businesses nationwide.
This follows the ongoing price war between NNPC Limited and Dangote Petroleum Refinery, with both companies reducing pump prices at their outlets and for partners.
This was disclosed by the President of PETROAN, Billy Gilly-Harris, during a live appearance on a Channels Television programme, Business Morning, on Tuesday.
Gilly-Harris stated that the recent fluctuations in petrol prices pose a serious threat to the survival of PETROAN members’ businesses.
On February 26, 2025, Dangote Petroleum Refinery announced a reduction in the ex-depot price of petrol from ₦890 to ₦825 per litre, effective February 27.
The company said the price adjustment aims to ease financial pressure on Nigerians ahead of Ramadan and support President Bola Tinubu’s economic recovery efforts.
In response, NNPC reduced the pump price of petrol at its outlets nationwide on March 3, 2025, as competition in the downstream oil sector intensified.
The PETROAN boss stated that a review of the downstream oil sector shows significant losses, with many oil marketers at risk of going out of business.
“In our consistently weekly reviews, we discovered that the size of loss, and the possibility of most of us getting out of business is glaring at us in the face. Because in today’s Nigeria, we have collaborative efforts being made between all the stakeholders, and we reach out to one another to know how the businesses are doing.
“As much as we are making efforts to make sure that Nigerians have product affordability from our end as the last mile in the industry, we also want to stay afloat and liquid.
“The challenge we have is that we buy products at a price today, and before the close of business, the price has reduced. We thought there should be a mechanism by which prices are analysed and ensure it doesn’t impact negatively on the industry,” Billy-Harris said.
He added, “I have always said that every business can only survive by making some minimal profits that are commensurate to the price of paying the cost of doing business.
“We are fully aware that the international prices of crude oil and other related expenses are also being reduced. But when we invest to buy products at say N880, we are not going to sell at that price. And if such products become reduced to N840, N850, N860 or even N870 per litre, it becomes challenging how we will be able to recover our costs.”
He urged the FCCPC and NMDPRA to protect industry players from the impact of the “sudden reduction” in petrol prices.
On price monopoly in the downstream sector, he stated that PETROAN members can import products or buy from local refineries but will not sell at prices that threaten their businesses’ survival.
He said “Yes, we have been in the forefront of always implementing what stakeholders agree. We have the capacity to import our products. We also have the capacity to buy locally refined products. But we see that prices consistently shift up or down, and there is no clear business consultation on how this should be done.
‘’That is why we said the NMDPRA and the consumer protection agency should swing into action and be able to work together with other stakeholders so that we can be able to have a stable market and a stable price.”
