Price war: PETROAN warns against monopoly, seeks healthy competition in Nigeria’s downstream oil sector  

In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN urged regulatory authorities to promote healthy competition and price stability in the country’s downstream petroleum sector to prevent monopolies and protect local refineries.   

“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has taken a firm stance on promoting healthy competition and controlling price fluctuations in the downstream sector,” the statement read. 

PETEOAN also lamented over the “massive” financial losses caused by the recent “sudden” drop in the price of petrol. 

PETROAN, in its statement on Monday, said the sudden price cuts led to massive losses in billions of Naira. 

“The association stressed that the sudden downward review of prices has resulted in massive losses, with those affected counting their losses in billions of naira. This situation poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions,” Obele noted. 

The PETROAN spokesperson emphasized the need for multiple supply sources, including the Dangote Refinery, NNPC refineries, modular refineries, and imports. 

This is contrary to protests by some stakeholders against the continued issuance of import licenses despite the availability of local supplies. 

PETROAN argued that a diverse supply base would allow competition between local and imported petroleum products, ensuring fair pricing and shielding the market from exploitation.   

“After consulting with key stakeholders like MEMAN, DAPPMAN, and NUPENG, PETROAN emphasized the importance of preventing monopolies and ensuring local refineries thrive, given their significant economic benefits to the country. 

“To achieve this, PETROAN advocates for a multiplicity of supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports.  

“This diverse range of sources will foster competition, especially with imports, allowing for comparisons with international market prices and protecting the local market from exploitation,” the statement read further. 

It called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to be vigilant and prevent unfair competition practices. 

While advocating a multiplicity of supply sources, PETROAN also sought support for local refineries, highlighting the following benefits: