The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for urgent measures to foster healthy competition and stabilize prices in the downstream petroleum sector. In a press release issued today, the association emphasized the crucial role of the sector in the nation’s economy and the need for policies that ensure fair competition and price stability.
According to PETROAN, market monopolies and fluctuating fuel prices threaten economic stability, consumer trust, and investment in the industry. To address these concerns, the association has advocated for the inclusion of multiple supply sources, including the Dangote Refinery, NNPC refineries, modular refineries, and imports. This, they believe, will create a competitive environment that prevents market exploitation and ensures fuel availability at reasonable prices.
PETROAN commended regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for their efforts in promoting competition. However, they urged these agencies to remain vigilant against unfair market practices.
Price Stability and Economic Security
The association also expressed concerns about the impact of volatile fuel prices on the economy. PETROAN highlighted that sudden price reductions have led to massive losses, discouraging further investment and threatening job security within the sector.
To mitigate these risks, PETROAN proposed the establishment of mechanisms to stabilize fuel prices for at least six months. They stressed that price fluctuations not only disrupt businesses but also negatively affect consumers by increasing transportation costs and inflation.
Policy and Regulatory Reforms
To achieve its objectives, PETROAN recommended key regulatory reforms, including:
- Strengthening market regulations to ensure fair competition.
- Implementing consumer protection policies against unfair pricing practices.
- Encouraging investment in infrastructure, such as refineries and distribution networks.
- Promoting sustainability initiatives to ensure environmental responsibility within the sector.
PETROAN reaffirmed its commitment to working with stakeholders, government agencies, and industry players to achieve a competitive and stable market. The association called on NMDPRA to take immediate action in enforcing fair pricing and ensuring that the downstream sector remains viable and beneficial to all Nigerians.
“By working together, we can build an industry that is resilient, competitive, and fair for all,” said Dr. Joseph Obele, National Public Relations Officer of PETROAN.