Oil marketers under the aegis of the Petroleum Products Retail Outlet Owners Association of Nigeria have condemned the constant reduction of fuel prices, saying marketers are still counting losses.
Despite deregulation, PETROAN said there is a need for a regulation that will make it mandatory that prices can only be changed after six months.
In a statement by PETROAN Publicity Secretary Joseph Obele, the association also made a u-turn, saying imports should be encouraged to put an end to monopoly.
Recently, the Dangote refinery dropped the price of Motor Spirit (petrol) from N890 per litre to N825 at the gantry.
This forced the Nigerian National Petroleum Company Limited to follow suit by lowering its pump price to N860 per litre.
Speaking about price stability, the association argued that volatile fuel prices can have a ripple effect throughout the economy, impacting transportation costs, food prices, and the overall cost of living, saying sudden spikes in fuel prices can lead to financial strain and uncertainty.
“The association stressed that the sudden downward review of prices has resulted in massive losses, with those affected counting their losses in billions of naira. This situation poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions.
“Moreover, the threat of price fluctuations is affecting the business boom of the sector, which will definitely 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,” the statement stated..
PETROAN called for a collaborative approach among stakeholders, including government agencies, regulatory bodies, and industry players, to establish mechanisms that promote price stability, including transparent pricing models, effective regulation, and strategic reserves that can be tapped into during times of crisis.
Our correspondent observes that some importers selling petrol at N945 in Lagos have now adjusted their prices, selling below N900. This, it was learnt, has led to losses as the importers sell below their costs.
While emphasising the critical role that the downstream sector plays in the nation’s economy, Obele said the sector is facing challenges like fluctuating prices, market monopolies, and unhealthy competition that can undermine the foundations of the economy and the trust of our citizens.
“After due consultation with key stakeholders and players in the petroleum sector, the Petroleum Products Retail Outlets Owners Association of Nigeria has taken a firm stance on promoting healthy competition and controlling price fluctuations in the downstream sector.
“To this effect, PETROAN advocates the importance of preventing monopolies and ensuring local refineries thrive, given their significant economic benefits to the country,” he stated.
He highlighted the importance of healthy competition, saying that when competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth.
“PETROAN firmly believes that a competitive downstream sector is not just beneficial but necessary.
“To achieve this, PETROAN advocates for 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.
“We advocate for policies that dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity can dominate the market to the detriment of consumers,” he added.
The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission “for their efforts in promoting healthy competition.”
However, the association also urged these regulatory bodies to remain vigilant and prevent unfair competition practices.
To achieve these goals, Obele added that players must advocate for sound policies and regulations that a competitive and stable market.
This includes establishing clear and fair regulations that govern market practices, and ensuring that all players adhere to the same standards.
PETROAN also called for implementing measures that protect consumers from unfair pricing and practices, ensuring that they have access to quality products at reasonable prices.
The association encouraged investment in infrastructure to the downstream sector, including refineries, distribution networks, and storage facilities.
“PETROAN is firmly committed to the Petroleum Industry Stakeholders Forum and stands firm to advocating for healthy competition, full liberalisation, and price stability in the downstream sector. We urgently urge NMDPRA to quickly swing into action to ensure fair pricing.
“We believe that by working together, industry stakeholders, government, and consumers, we can create a vibrant, competitive market that benefits everyone. Let us unite in our efforts to ensure that the downstream sector not only meets the needs of today but also paves the way for a sustainable and prosperous future. Together, we can build an industry that is resilient, competitive, and fair for all,” the statement concluded.
Gone are the days where one entity determines the price of fuel. Deregulation of PMS is the best policy from Tinubu. Let their be competition, it good for the final consumer.
Oil marketers under the aegis of the Petroleum Products Retail Outlet Owners Association of Nigeria have condemned the constant reduction of fuel prices, saying marketers are still counting losses
They want price fixed, to protect them from
incurring loss from their importation.....let them face the market forces heads on and if they can not survive, divest to another sector.
masterfactor:
Gone are the days where one entity determines the price of fuel. Deregulation of PMS is the best policy from Tinubu. Let their be competition, it good for the final consumer.
I know a station that was selling at 920/liter as at last week Friday but had to drop the pump price to 875 this week despite having reserves of old stock.
The thing is... with the drop in pms prices it's still yet to affect transport fares. Motorist are even saying they won't drop fare prices cos of the expensive nature of spare parts etc
Lol. But when the price suddenly goes up and they make more profit, they don't see any need to complain. Welcome to the world of deregulation.
On the flip side, they can source for cheaper ones too abroad and drop the price below local rate. Shebi they were saying that it was cheaper importing than sourcing locally.
masterfactor:
Gone are the days where one entity determines the price of fuel. Deregulation of PMS is the best policy from Tinubu. Let their be competition, it good for the final consumer.
Any idea why this best policy has failed to yield the crash in petrol price that T-Pain promised over two years ago?
What is the meaning of his hitting the ground running 22 months ago, if he can't do what he promised as Asiwaju omoluabis
Deltafirstson:
Although the pump price of fuel was N197 when President Bola Tinubu took over on May 29, 2023, the product now sells for N617 per litre – less than two months after.
In his inaugural address, Tinubu announced that subsidy was gone, fulfilling a promise that all leading presidential candidates made during the campaign.
However, pump price of fuel hit N537 per litre days after Tinubu ended subsidy.
On Tuesday, the price climbed further to N617, a development that the Nigerian National Petroleum Corporation Limited (NNPCL) attributed to “market forces”.
Nigerians have been lamenting the hardship occasioned by fuel price hike. Amid the lamentation, a video where Tinubu campaigned to slash the price of fuel went into circulation.
Checks by Daily Trust affirmed the authenticity of the video ed on the YouTube page of Channels Television.
At his campaign rally in Abeokuta, Ogun State capital, on January 25, 2023, Tinubu spoke on a number of issues, but those of fuel scarcity and naira redesign made the headlines.
However, Tinubu who spoke in Yoruba language, also assured the crowd that though people were saying petrol price would hit N200, it would be reviewed downward under him.
“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200 per litre. Go and relax, we will bring it down,” he had said in the 7th minute of the video.
King Wasiu Ayinde Marshall, a Fuji musician who performed at the rally, interrupted the president’s speech with chants as the crowd cheered.
On the campaign podium with the president were Vice-President Kashim Shettima; Pa Bisi Akande, interim National Chairman of the APC; Femi Gbajabiamila, Chief of Staff to the President; Senator Gbenga Daniel; among other bigwigs of the ruling party.
Tinubu went further to say Nigerians would defy the acute fuel scarcity at the time and trek to cast their votes.
“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200/N500 per litre. Go and relax, we will crash the prices,” he had said.
I know a station that was selling at 920/liter as at last week Friday but had to drop the pump price to 875 this week despite having reserves of old stock.
That's what the lamentation is all about
But same station didn't lament when the price increased from 500 to 1,200.
When they were making arbitrary profits from open and black market back then, why didn't they call for regulations then?? Why now??
You can't be enjoying free rides for too long in the new economy we are heading to, except you are very innovative, and creative and you have done everything to become a very big player in the market.
The batman is right about wicked people everywhere led by BAT, who is the president and petroleum minister but has failed to crash petrol prices as promised just as he is failing to provide progressive governance democracy dividends to Lagosians with his 26 years old master plan.
anonimi: The eyesore on Bourdillon Road
2nd January 2025
Beyond his neighbours, there is something about the sight of people hanging around a president’s residence that does not speak well of his leadership capabilities. Maybe no one has nudged him to see it, but the impression that spectacle on Bourdillon Road generates is that Tinubu enjoys the sight of suffering humans and thrives in—and through— their poverty.
If all these years, impoverished people hang around you and you remain comfortable enough to keep them just so they can be handed tokens of your large heart, then it means you have a pro-poverty mindset. Such a frame of mind is oriented toward cultivating poverty rather than stimulating abundance. That is why he could unproblematically relate the story of his “friend” who went from using five Rolls Royce to a far-less valued car and not consider the import of the nonsense he was saying. That spurious was an indication that this is a man for whom poverty—of others, not himself—is an ideal.
Ernchibyke:
The thing is... with the drop in pms prices it's still yet to affect transport fares. Motorist are even saying they won't drop fare prices cos of the expensive nature of spare parts etc
How do we navigate this hurdle?
With time they will have no choice. We just need the good ones around us to start the fare reduction first. Or are their no good Nigerians again?
