Oil marketers have said the constant changes in the price of petrol is threatening their businesses.
The marketer, under the aegis of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN) expressed frustration over the situation, saying the development was negatively impacting their businesses.
President of PETROAN, Billy Gilly-Harris, made thios known when he was featured as a guest on Channels Television programme, Business Morning.
He said the fluctuating petrol prices in the last few weeks was potentially threatening the survival of its members’ businesses.
The management of Dangote Petroleum Refinery on February 26, announced a reduction in the ex-depot price of petrol, from N890 to N825 per litre, effective February 27, 2025.
A few days later, the NNPC also announced a reduction of the pump price of petrol at its outlets across the country.
According to Gilly-Harris, a review of the current development in the downstream sector of the oil industry revealed that the size of the loss and the possibility of most of the oil marketers going out of business was quite glaring.
“In our consistent weekly reviews, we discovered that the size of loss, and the possibility of most of us getting out of business is glaring at us in the face. Because in today’s Nigeria, we have collaborative efforts being made between all the stakeholders, and we reach out to one another to know how the businesses are doing.
“As much as we are making efforts to make sure that Nigerians have product affordability from our end as the last mile in the industry, we also want to stay afloat and liquid.
“The challenge we have is that we buy products at a price today, and before the close of business, the price has reduced. We thought there should be a mechanism by which prices are analysed and ensure it doesn’t impact negatively on the industry.”
Continuing, the PETROAN president said:“I have always said that every business can only survive by making some minimal profits that are commensurate to the price of paying the cost of doing business.
“We are fully aware that the international prices of crude oil and other related expenses are also being reduced. But when we invest to buy products at say N880, we are not going to sell at that price. And if such products become reduced to N840, N850, N860 or even N870 per litre, it becomes challenging how we will be able to recover our costs.”
He urged the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to protect industry players against the “sudden reduction” of petrol prices.
Commenting on price monopoly in the downstream sector, Gilly-Harris marketers can either import products or buy from local refineries, but would, however, not sell products at the expense of the survival of their businesses.
He said “Yes, we have been in the forefront of always implementing what stakeholders agree. We have the capacity to import our products. We also have the capacity to buy locally refined products. But we see that prices consistently shift up or down, and there is no clear business consultation on how this should be done.
“That is why we said the NMDPRA and the consumer protection agency should swing into action and be able to work together with other stakeholders so that we can be able to have a stable market and a stable price,” Gilly-Harris added.
PETROAN had earlier warned against monopolies and unfair competition in the downstream oil sector while calling for healthy competition.
