Unrealistic Petrol Prices Threatening Market Stability, Marketers Warn
Consumers Could Face Deeper Hardship as Price War Intensifies
By Adewale Sanyaolu
Oil marketers under the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) have raised alarm over the current downward trend in petrol prices, warning that the artificially low prices don’t reflect market realities and could destabilize the downstream sector.
Market Distortion Concerns
PETROAN National President, Mr. Billy Gillis-Harry, in an exclusive interview, expressed concern that some marketers are engaging in unsustainable price reductions that threaten the industry’s stability. He attributed this trend to the aggressive pricing strategy of Dangote Refinery, which has reduced petrol prices more than 10 times in the past two months.
“Those prices you see that are around N815 or N820 per litre don’t reflect market or economic realities. They cannot stand the test of time,” Gillis-Harry stated. “The big player in the industry is to be blamed for this unhealthy rivalry in the market.”
Price Disparity Across Marketers
Market surveys reveal significant price variations among operators:
- Aiteo, Sahara, Rainoil: N815-N825/litre
- First Fortune, Parker: N839-N825/litre
- Dangote partners (Ardova, MRS, Heyden): N860/litre
The PETROAN president warned that this pricing war could lead to anti-consumer practices including under-dispensing, off-spec products, and potentially dangerous fuel adulteration as struggling marketers attempt to stay afloat.
Call for Regulatory Intervention
Gillis-Harry urged the Federal Competition and Consumer Protection Council (FCCPC) and Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) to investigate potential market abuse:
“In as much as we want Dangote business to be successful, we also want to be successful. There should be a meeting point where everything we do should bring succor to the Nigerian people.”
Monopoly Concerns
The association had previously accused Dangote Refinery of attempting to monopolize the downstream sector through its forward integration strategy. With a production capacity of 650,000 barrels per day, PETROAN argues the refinery should focus on competing globally rather than dominating local distribution.
“This massive refinery, one of the largest in sub-Saharan Africa, is expected to satisfy domestic fuel demand and export surplus products,” the association noted, expressing concerns about potential price fixing and market manipulation.
Potential Job Losses
PETROAN warned that Dangote’s pricing strategy could force many filling stations out of business, leading to:
- Massive shutdowns of independent stations
- Thousands of job losses across the sector
- Displacement of existing truck operators by Dangote’s 4,000 new CNG-powered tankers
The marketers called for urgent government intervention to prevent market collapse and protect consumers from potential long-term negative consequences of the current price war.
Full credit to the original publisher: The Sun Nigeria