Oil marketers decry unstable petrol prices amid NNPC, Dangote price war

The Petroleum Products Retail Outlets Association of Nigeria (PETROAN) has raised concerns over the negative impact of fluctuating petrol prices on their businesses across Nigeria.

The instability in Premium Motor Spirit (PMS) pricing has left marketers struggling with losses, prompting calls for regulatory intervention.

The concerns come amid an ongoing price competition between the Nigerian National Petroleum Company (NNPC) Limited and the Dangote Petroleum Refinery, as both firms have slashed pump prices to attract customers.

Speaking on Channels Television’s Business Morning on Tuesday, March 11, 2025, PETROAN President Billy Gilly-Harris warned that the unpredictable petrol price fluctuations threaten the survival of independent marketers.

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“In our consistent weekly reviews, we discovered that the size of loss and the possibility of most of us going out of business is glaring at us in the face,” Gilly-Harris stated. “As much as we are making efforts to ensure affordability for Nigerians, we also need to stay afloat and remain liquid.”

According to him, the frequent changes in fuel prices make it difficult for marketers to recover costs, as they often buy at one price, only for the price to drop before they finish selling their stock.

The Dangote Petroleum Refinery had announced a reduction in its ex-depot price of petrol from N890 to N825 per litre, effective February 27, 2025.

The company stated that the price cut was intended to provide relief to Nigerians, especially during the Ramadan season, and support President Bola Ahmed Tinubu’s economic recovery policy.

In response, the NNPC also lowered petrol prices at its retail outlets across Nigeria, citing market dynamics as the reason for the adjustment.

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READ ALSO: Dangote Refinery pledges N16bn refund to oil marketers following petrol price slash

According to Olufemi Soneye, Group Chief Corporate Communications Officer of NNPC, price fluctuations are a regular occurrence in a deregulated market and are influenced by global oil prices and local supply dynamics.

Gilly-Harris urged the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene and protect independent marketers from sudden price reductions that leave them at a disadvantage.

“We believe there should be a structured mechanism for price reviews to ensure it does not impact negatively on industry players,” he said. “Every business can only survive if it makes a minimal profit that covers operational costs. But when we buy at N880 per litre and prices drop to N850 or lower, it becomes extremely difficult to recover costs.”

He further highlighted the challenges of a monopolized market, warning that inconsistent pricing strategies could destabilize independent marketers.

Gilly-Harris emphasized that PETROAN members have the capacity to import fuel or purchase from local refineries, but erratic price adjustments make it impossible to operate profitably.

“We have been at the forefront of implementing industry agreements. We support a competitive market, but there must be fairness in pricing strategies. That’s why we are calling on the regulatory agencies to step in and ensure a stable market,” he stated.

Similarly, PETROAN spokesperson Joseph Obele urged authorities to prevent monopolies and unfair competition in the downstream petroleum sector.

He stressed the need for multiple supply sources, including NNPC refineries, the Dangote Refinery, modular refineries, and fuel imports, to maintain a healthy and competitive downstream industry.

With fuel marketers struggling to remain profitable, industry experts warn that continued instability in pricing could lead to widespread business closures, reduced investments in the sector, and a potential supply crisis.

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