The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners and depot owners to reduce the prices of petrol as pressure mounts across Nigeria’s downstream petroleum sector.
The association is urging operators to review their gantry and ex-depot prices so that the benefits of changing market conditions can be passed on to consumers.
The latest call comes amid growing concerns that petrol prices have not fallen in line with developments in the international oil market and changes in domestic supply.
PETROAN President Billy Gillis-Harry has maintained that lower crude oil prices should translate into cheaper petroleum products for Nigerians. The association previously argued that imported products were, in some cases, landing in Nigeria at prices below those being offered by local refiners, raising questions about the competitiveness of the domestic market.
PETROAN said increased competition among refiners, importers and depot operators would encourage suppliers to adjust their prices and prevent any single operator from exerting excessive influence over the market.
The association has also urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting import licences to qualified marketers where necessary, arguing that competition could help moderate prices and ensure adequate supply.
The pressure on refiners and depot owners comes as Nigeria’s downstream sector continues to adjust to the effects of local refining and deregulation.
The Dangote Petroleum Refinery has emerged as a major force in the market, with its pricing decisions putting pressure on other suppliers to remain competitive. Previous price reductions by the refinery forced several private depots and importers to review their own prices as they struggled to compete with cheaper locally refined petrol.
Industry stakeholders have also called for the revival of other domestic refineries, including the Port Harcourt and Warri refineries, arguing that greater refining capacity would increase competition and potentially push fuel prices lower.
PETROAN believes that a combination of lower crude prices, improved refining capacity, stable exchange rates and stronger competition could create room for further reductions in petrol prices.
However, the association has acknowledged that operators face different costs depending on their source of supply, exchange rates, logistics and other operational expenses.
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