16 hours Ago By Guardian Nigeria
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has committed to promoting healthy competition and controlling price fluctuations in the downstream sector. Following consultations with key stakeholders, including the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and PETROAN emphasised the need to prevent monopoly and ensure local refineries thrive. Recognising the economic benefits of local refining and the challenges posed by market instability, PETROAN, in a statement, urged regulatory authorities to establish mechanisms that encourage price stability for at least six months.
The association believes that such would reduce investment risks, foster economic growth and ultimately protect the interests of consumers and Nigerians at large. “To achieve this, PETROAN advocates a multiplicity of supply sources, including Dangote Refinery, NNPC refineries, modular refineries and imports. This diverse range of sources will foster competition, especially with imports, allowing for comparisons with international market prices and protecting the local market from exploitation,” it stated.
The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for their efforts in promoting healthy competition. However, it also urged the regulatory bodies to remain vigilant and prevent unfair competition. PETROAN highlighted the need to encourage all local refineries, as it will benefit the economy through increased domestic production of petroleum products, reduced reliance on imports, creation of jobs, stimulation of economic growth, improved energy security and reduced vulnerability to international market fluctuations.
The association stressed that the sudden downward review of prices has resulted in massive losses, with those affected counting losses in billions of naira. This situation poses a significant fear of further divestment in the sector, as investors are wary of unpredictable market conditions. “Moreover, the threat of price fluctuations is affecting the businesses in the sector, which will lead to retrenchment.
This will have far-reaching consequences, including job losses and economic instability. “To address these challenges, PETROAN proposed that regulatory authorities establish mechanisms to encourage price stability for at least six months. This approach will help reduce the uncertainty and risk associated with investments in the sector, ultimately promoting economic development and protecting the interests of consumers and Nigerians,” it added.
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