Petroleum Products Retailers Back Supply of Fuels from All Sources

•Say import will enhance competition, curb monopoly 

•Insist sudden downward review of prices resulting in massive losses

Emmanuel Addeh in Abuja

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) yesterday said it was in support of petroleum products supply from multiple sources, including imports from abroad.

In a statement in Abuja, PETROAN stated that after due consultation with key stakeholders and players in the petroleum sector, it had taken a firm stance on promoting healthy competition and controlling price fluctuations in the downstream sector.

“To this effect, PETROAN advocates the importance of preventing monopolies and ensuring local refineries thrive, given their significant economic benefits to the country.  Healthy competition is essential for fostering innovation, improving service delivery, and ensuring that consumers have access to affordable products.

“When competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth. PETROAN firmly believes that a competitive downstream sector is not just beneficial but necessary,” the Dr Billy Gillis-Harry-led group stated.

It added: 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.

“We advocate for policies that dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity can dominate the market to the detriment of consumers.”

The association commended government agencies for their efforts in promoting healthy competition, but also urged the regulatory bodies to remain vigilant and prevent unfair competition practices. 

The association stressed that the sudden downward review of prices has resulted in massive losses to marketers, with those affected counting their losses in billions of naira.

The situation, it said, poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions.

“Moreover, the threat of price fluctuations is affecting the business boom of the sector, which will definitely lead to retrenchment. This will have far-reaching consequences, including job losses and economic instability.

“To address these challenges, PETROAN proposed that regulatory authorities establish mechanisms to encourage price stability for at least six months. This approach will help reduce the uncertainty and risk associated with investments in the sector, ultimately promoting economic development and protecting the interests of consumers and Nigerians,”  the organisation advised.

It called for a collaborative approach among stakeholders, including government agencies, regulatory bodies, and industry players, to establish mechanisms that promote price stability.

 This, it said, includes transparent pricing models, effective regulation, and strategic reserves that can be tapped into during times of crisis.

“To achieve these goals, we must advocate for sound policies and regulations that support a competitive and stable market. This includes establishing clear and fair regulations that govern market practices, ensuring that all players adhere to the same standards.

“Implementing measures that protect consumers from unfair pricing and practices, ensuring that they have access to quality products at reasonable prices and encouraging investment in infrastructure that supports the downstream sector, including refineries, distribution networks, and storage facilities,” it advocated.

PETROAN said it was firmly committed to the Petroleum Industry Stakeholders Forum and stands firm to advocating for healthy competition, full liberalisation, and price stability in the downstream sector.

“We urgently urge NMDPRA to quickly swing into action to ensure fair pricing. We believe that by working together, industry stakeholders, government, and consumers, we can create a vibrant, competitive market that benefits everyone,” the petrol retailers added.