The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the regulatory authorities to establish mechanisms to encourage fuel price stability for at least six months.
Dr Joseph Obele, National Public Relations Officer, PETROAN, said on Monday night that while the diverse range of sources would foster competition, it was important to allow comparisons with international market prices to protect the local market from exploitation.
PETROAN, while decrying fluctuating prices, market monopolies and unhealthy competition, advocated for a multiplicity of supply sources, including the Dangote Refinery, Nigerian National Petroleum Company Limited (NNPC Ltd.) refineries, modular refineries and imports.
Obele said that the sudden downward review of prices had resulted in massive losses, with those affected counting their losses in billions of naira.
He said that the situation posed a significant fear for further investment in the sector, as investors were wary of unpredictable market conditions.
“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.
“The Importance of Healthy Competition Healthy competition is essential for fostering innovation, improving service delivery, and ensuring that consumers have access to affordable products,” he said.
According to Obele, the threat of price fluctuations has deprived the sector of a business boom and will eventually have far-reaching consequences, including job losses and economic instability.
He advocated for policies that would dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity would dominate the
market to the detriment of consumers.
He 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.
He, however, urged the regulatory authorities to remain vigilant and prevent unfair competition practices.
“Volatile fuel prices can have a ripple effect on the economy, impact transportation costs, food prices, and the overall cost of living.
“PETROAN calls for a collaborative approach among stakeholders, including government agencies, regulatory bodies and industry players, to establish mechanisms that promote
price stability.
“This includes transparent pricing models, effective regulation and strategic reserves that can be tapped into during times of crisis.
“We urgently urge NMDPRA to quickly swing into action to ensure fair pricing,” he said.
Recall that the NNPC Ltd. recently reduced its retail fuel prices in Lagos and Abuja from N945 and N965 per litre to N860 and N880 per litre, respectively.
Dangote Refinery had earlier slashed its fuel price to the same level across its retail outlets.
