The Independent Petroleum Marketers Association of Nigeria has raised concerns over the ongoing price war between Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited, saying it is negatively affecting their businesses.
Price Fluctuations Hurting Fuel Marketers
Chinedu Anyaso, chairman of IPMAN Enugu Depot Community, which oversees Anambra, Ebonyi, and Enugu states, said the instability in fuel prices is making business difficult for marketers. He noted that petrol prices in Awka now range between ₦865 and ₦950 per litre, making it hard for investors to plan and sustain their operations.
He explained that while competition between NNPCL and Dangote Refinery has led to lower prices, the frequent price changes are not due to international oil market trends but a rivalry between the two companies.
Losses Due to Sudden Price Drops
Anyaso highlighted that many marketers buy fuel at a certain price, only for the price to drop by ₦10 or ₦20 per litre before they even leave the depot, leading to immediate losses. He cited a recent case where one company suddenly reduced its price after a discussion with marketers, forcing the other to respond with an even bigger price cut.
The situation, he said, is making it difficult for marketers to repay bank loans, pay salaries, or maintain stable business operations. He noted that profitability is no longer guaranteed as prices keep changing unexpectedly.
Call for Stability in the Fuel Market
To stabilise the industry, Anyaso urged NNPCL to begin full-scale production rather than relying partly on fuel imports. He also called on the federal government to settle outstanding bridge claims owed to marketers, warning that many businesses have already shut down due to unpaid debts.
Need for a Level Playing Field
Anyaso stressed that for deregulation to truly benefit Nigerians, both Dangote Refinery and NNPCL must operate under the same conditions. He argued that NNPCL must refine crude oil locally rather than depending on imports, as a mix of local refining and imports creates market imbalances.
He warned that unless both companies refine fuel locally, price instability will persist. He urged the government to take steps to protect marketers and ensure job security in the downstream sector.