The Petroleum Merchandise Retail Retailers Homeowners Affiliation of Nigeria (PETROAN) has warned towards monopolies and unfair competitors within the downstream oil sector whereas calling for wholesome competitors.
In an announcement signed by its Nationwide Public Relations Officer, Dr. Joseph Obele, PETROAN urged regulatory authorities to advertise wholesome competitors and value stability within the nation’s downstream petroleum sector to stop monopolies and shield native refineries.
“The Petroleum Merchandise Retail Retailers Homeowners Affiliation of Nigeria (PETROAN) has taken a agency stance on selling wholesome competitors and controlling value fluctuations within the downstream sector,” the assertion learn.
The latest drop in pump value led to large losses
PETEOAN additionally lamented over the “large” monetary losses brought on by the latest “sudden” drop within the value of petrol.
- Nairametrics reported that the Dangote refinery made a N65 discount within the value of Premium Motor Spirit (also called petrol).
- The Nigeria Nationwide Petroleum Firm Restricted (NNPCL) rapidly responded with a value discount, signaling a value struggle between the 2 corporations.
- Nairametrics reported that retailing companion retailers of the Dangote Refinery now promote between N860 and N890 based mostly on the state/area, with Lagos having the most affordable value. We additionally confirmed that NNPCL diminished pump costs in its shops in Lagos to N860.
PETROAN, in its assertion on Monday, mentioned the sudden value cuts led to large losses in billions of Naira.
“The affiliation confused that the sudden downward evaluate of costs has resulted in large losses, with these affected counting their losses in billions of naira. This example poses a big worry for additional funding within the sector, as buyers are cautious of unpredictable market circumstances,” Obele famous.
Encourages a number of provide sources
The PETROAN spokesperson emphasised the necessity for a number of provide sources, together with the Dangote Refinery, NNPC refineries, modular refineries, and imports.
That is opposite to protests by some stakeholders towards the continued issuance of import licenses regardless of the supply of native provides.
PETROAN argued {that a} various provide base would permit competitors between native and imported petroleum merchandise, making certain truthful pricing and shielding the market from exploitation.
“After consulting with key stakeholders like MEMAN, DAPPMAN, and NUPENG, PETROAN emphasised the significance of stopping monopolies and making certain native refineries thrive, given their vital financial advantages to the nation.
“To realize this, PETROAN advocates for a multiplicity of provide sources, together with Dangote Refinery, NNPC refineries, modular refineries, and imports.
“This various vary of sources will foster competitors, particularly with imports, permitting for comparisons with worldwide market costs and defending the native market from exploitation,” the assertion learn additional.
It known as on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competitors and Client Safety Fee (FCCPC) to be vigilant and forestall unfair competitors practices.
Encourages help for native refineries
Whereas advocating a multiplicity of provide sources, PETROAN additionally sought help for native refineries, highlighting the next advantages:
- Elevated home manufacturing of petroleum merchandise.
- Decreased reliance on imports.
- Creation of jobs and stimulation of financial progress.
- Improved vitality safety and diminished vulnerability to worldwide market fluctuations.
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