.We buy products at a price today, and before the close of business, the price has reduced” – PETROAN President
.Says fluctuating petrol prices in the last few weeks potentially threatening
.Adjustments reflecting influence of market forces – NNPCL
By Charles Ebi
Landing cost of imported Premium Motor Spirit, PMS, otherwise known as petrol imported into Nigeria has dropped to N774.72 per litre, sparking panic among marketers as the price drop indicates that a N800 per litre price of PMS is in the horizon.
AljazirahNigeria reports that the N774.72 per litre landing cost includes in various expenses including shipping, import duties, and exchange rates, is a considerable reduction of N50.28 from the N825 per litre offered at the loading gantry of the Dangote Petroleum Refinery, Lekki-Lagos.
Sequel to the drop in landing cost Oil marketers under the aegis of the Petroleum Products Retail Outlets Association of Nigeria, PETROAN, have expressed frustration over the negative impacts of the unstable prices of Premium Motor Spirit, otherwise known as petrol, on their businesses across the country.
This is coming on the heels of the recent price war between the Nigerian National Petroleum Company, NNPC, Limited and the Dangote Petroleum Refinery, with both oil firms reducing the pump price of petrol across their outlets as well as for their partners.
This was made known by the President of PETROAN, Billy Gilly-Harris, when he appeared as guest on a Channels Television programme, Business Morning, on Tuesday, March 11, 2025.
Gilly-Harris said the fluctuating petrol prices in the last few weeks are potentially threatening the survival of its members’ businesses.
The management of Dangote Petroleum Refinery had on February 26, 2025, announced a reduction in the ex-depot price of petrol, from ₦890 to N825 per litre, effective from February 27, 2025.
It stated that this strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
In response, the NNPC had on February 3, 2025, reduced the pump price of petrol sold at its outlets across the country as the competition in the downstream sector of the oil industry intensifies.
As part of the reaction to the development, the Group Chief Corporate Communications Officer of NNPC, Olufemi Soneye, said that these adjustments occur regularly, reflecting the influence of market forces. He noted that the NNPC has consistently adjusted prices since the deregulation of the downstream sector in response to market dynamics.
The PETROAN boss said that a review of the current development in the downstream sector of the oil industry revealed that the size of the loss and the possibility of most of the oil marketers going out of business is quite glaring.
Billy-Harris said, “In our consistently weekly reviews, we discovered that the size of loss, and the possibility of most of us getting out of business is glaring at us in the face. Because in today’s Nigeria, we have collaborative efforts being made between all the stakeholders, and we reach out to one another to know how the businesses are doing.
“As much as we are making efforts to make sure that Nigerians have product affordability from our end as the last mile in the industry, we also want to stay afloat and liquid.
“The challenge we have is that we buy products at a price today, and before the close of business, the price has reduced. We thought there should be a mechanism by which prices are analysed and ensure it doesn’t impact negatively on the industry.
“I have always said that every business can only survive by making some minimal profits that are commensurate to the price of paying the cost of doing business.
“We are fully aware that the international prices of crude oil and other related expenses are also being reduced. But when we invest to buy products at say N880, we are not going to sell at that price. And if such products become reduced to N840, N850, N860 or even N870 per litre, it becomes challenging how we will be able to recover our costs”.
Billy-Harris, also urged the Federal Competition and Consumer Protection Commission, FCCPC, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to protect industry players against the “sudden reduction” of petrol prices.
Commenting on price monopoly in the downstream sector, Gilly-Harris said its members can either import products or buy from local refineries, however, it would not sell products at the expense of the survival of PETROAN members’ businesses.
He said “Yes, we have been in the forefront of always implementing what stakeholders agree. We have the capacity to import our products. We also have the capacity to buy locally refined products. But we see that prices consistently shift up or down, and there is no clear business consultation on how this should be done.
‘’That is why we said the NMDPRA and the consumer protection agency should swing into action and be able to work together with other stakeholders so that we can be able to have a stable market and a stable price”.
PETROAN, through its spokesman, Joseph Obele, had earlier warned against monopolies and unfair competition in the downstream oil sector while calling for healthy competition.
Obele urged regulatory authorities to promote healthy competition and price stability in the country’s downstream petroleum sector to prevent monopolies and protect local refineries.
He emphasized the need for multiple supply sources, including the Dangote Refinery, NNPC refineries, modular refineries, and imports.
