Oil marketers in Nigeria have raised alarms over the continuous fluctuations in petrol prices, warning that the instability poses a serious threat to their businesses.
Billy Gilly-Harris, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), voiced these concerns during an appearance on Channels Television’s Business Morning on Tuesday.
According to him, the unpredictable pricing trend in recent weeks has made it increasingly difficult for retailers to remain afloat.
The ongoing price war between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has further complicated matters.
Dangote Refinery recently slashed its ex-depot price by ₦65, leading to a drop in retail prices at its affiliated stations from ₦925-₦930 per litre to ₦860. In response, NNPCL also adjusted its pricing downward, intensifying competition between the two major market players.
Gilly-Harris highlighted how these price fluctuations are creating losses for retailers, saying, “The possibility of most of us going out of business is glaring at us. We buy products at a certain price today, only for the price to drop before the close of business. There should be a mechanism to regulate these fluctuations to ensure they don’t negatively impact the industry.”
He further emphasized that while crude oil prices and related expenses are also declining globally, the inconsistency in the local pricing structure remains a challenge. “If we buy at ₦880 per litre and the price suddenly drops to ₦840, ₦850, or ₦860, recovering our costs becomes a major problem,” he said.
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On the issue of price regulation, Gilly-Harris called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the consumer protection agency to intervene.
He stressed the need for proper business consultations and stakeholder engagement to stabilize the market.
“We have the capacity to import or buy locally refined products, but the persistent price swings without clear consultation make the business environment unpredictable. A more stable pricing structure is essential for sustainability,” he concluded.
The fluctuating petrol prices continue to fuel uncertainty in the downstream sector, with industry players urging regulators to take swift action to protect businesses and ensure market stability.