Oil marketers in Nigeria are raising alarm over the frequent fluctuations in fuel prices, warning that the instability is pushing many businesses toward collapse. The ongoing price war between Dangote Refinery and the Nigerian National Petroleum Company (NNPC) Limited has intensified the crisis, leaving fuel retailers struggling to stay afloat.
Billy Gilly-Harris, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed deep concerns during an interview on Channels Television’s Business Morning. He explained that the continuous changes in fuel prices are creating an unsustainable business environment, making it nearly impossible for retailers to plan, operate efficiently, or remain profitable.
He highlighted that fuel stations are purchasing products at a fixed price in the morning, only to see prices drop by evening, leading to significant financial losses. This unpredictable pricing pattern, he said, is threatening the survival of many independent marketers. He explained that in a well-structured economy, businesses need a level of price stability to ensure they can cover operational costs and make reasonable profits.
Gilly-Harris revealed that the recent price reductions initiated by Dangote Refinery and followed by NNPC have exacerbated the situation. Dangote Refinery announced a price cut of N65 at the ex-depot level, leading to a reduction in retail fuel prices from N925–N930 per litre to N860 per litre at its filling stations. In response, NNPC also lowered its retail prices, triggering intense competition in the market.
He emphasized that while international crude oil prices and related costs have also seen reductions, the lack of a structured approach to fuel pricing in Nigeria makes it extremely difficult for retailers to maintain financial stability. He noted that fuel marketers are unable to forecast their earnings, as they are forced to buy products at higher prices and sell them at lower rates due to sudden price slashes.
He warned that if the trend continues without regulatory intervention, many retailers will be forced out of business, leading to massive job losses and a potential fuel distribution crisis. He stressed that a business cannot survive without making at least minimal profits to cover operational expenses. The situation has now placed many marketers in a state of uncertainty, making it difficult for them to continue operations without running into losses.
He further explained that fuel marketers in Nigeria have the capacity to import petroleum products or buy from local refineries. However, without a clear pricing framework, the industry remains unstable. He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Consumer Protection Agency to intervene immediately and work with stakeholders to create a structured pricing system that guarantees stability. He said that inconsistent pricing is affecting not just marketers but the entire fuel supply chain, including transportation, logistics, and the end consumers who bear the brunt of market instability.
He also emphasized that PETROAN members have always complied with industry regulations and agreements reached by stakeholders. However, the persistent price fluctuations make it difficult for fuel retailers to operate under normal business conditions. He urged the government and regulatory agencies to introduce mechanisms that ensure fair and predictable pricing in the petroleum industry, arguing that stability in fuel pricing would create a more sustainable and profitable business environment for all stakeholders.
The concerns raised by oil marketers highlight the broader issues affecting Nigeria’s petroleum sector, where price instability continues to impact businesses, consumers, and the economy. Without a clear regulatory framework to control the erratic changes in fuel prices, the country may face long-term disruptions in fuel supply and business sustainability. The need for urgent intervention has never been greater, as marketers warn that continued losses could force many fuel stations to shut down, further compounding the nation’s economic challenges.
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