Oil marketers have raised concerns over the negative impact of fluctuating petrol prices on their businesses, warning that the instability threatens their survival.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, highlighted the issue during an interview on Channels Television’s Business Morning on Tuesday. He noted that the recent volatility in fuel prices has put significant financial pressure on retail outlets.
The concerns follow an ongoing price competition between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). After Dangote Refinery reduced its ex-depot price by ₦65, retail pump prices at its filling stations dropped from ₦925–₦930 to ₦860 per litre. In response, NNPCL also slashed prices at its retail outlets, intensifying competition between the two major players in the sector.
Gilly-Harris stated that the frequent price changes have made it difficult for retailers to sustain their businesses.
“In our consistent weekly reviews, we have seen that the level of losses and the possibility of many of us going out of business are becoming glaring,” he said.
He added that while marketers strive to ensure affordability for consumers, the unpredictable price swings make it difficult to remain financially stable.
“The challenge is that we buy products at a certain price, and before the close of business, the price drops. There should be a mechanism to regulate price fluctuations to prevent negative impacts on the industry,” he said.
Gilly-Harris emphasized that businesses can only survive by maintaining minimal profits to cover operating costs. He expressed concerns about purchasing fuel at ₦880 per litre, only for the price to drop to ₦840–₦870, making it difficult for retailers to recover their investments.
Speaking on price regulation in the downstream sector, he noted that PETROAN members have the capacity to import or buy locally refined products. However, he stressed that they would not operate at a loss.
“We have always implemented stakeholder agreements, and we have the capacity to import or purchase locally refined products. But with prices fluctuating without clear business consultations, we urge the NMDPRA and the Consumer Protection Agency to take action and work with stakeholders to ensure a stable market and pricing system,” he said.
Oil marketers are calling for regulatory intervention to prevent further disruptions in the sector and ensure price stability for both businesses and consumers
