Newscenter Media News The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised serious concerns over the adverse effects of fluctuating petrol prices on the survival of its members’ businesses.
President of PETROAN, Billy Gilly-Harris, voiced these concerns during an appearance on Business Morning on Channels Television on Tuesday, highlighted the increasing threat posed by unstable prices of Premium Motor Spirit (PMS) in recent weeks.
Gilly-Harris’s remarks come amid an ongoing price competition between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). Following a ₦65 reduction in ex-depot prices by the Dangote Refinery, retail prices at its affiliated filling stations fell from ₦925-₦930 per litre to ₦860. In response, NNPCL also lowered its prices at its retail outlets, intensifying the rivalry between the two dominant players in the sector.
The PETROAN president warned that these rapid and unpredictable price changes are pushing many retail business owners toward insolvency.
“In our consistent weekly reviews, we discovered that the size of losses and the possibility of many of our members going out of business is becoming glaring,” Gilly-Harris stated. “As the last mile in the industry, we strive to ensure product affordability for Nigerians, but we also need to remain afloat and liquid.”
He explained that the primary challenge lies in purchasing products at a given price, only for prices to drop before the end of the business day, creating significant financial losses.
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“We thought there should be a mechanism for price analysis to prevent such negative impacts on the industry. Every business can only survive by making minimal profits that cover the cost of doing business,” he said.
While acknowledging the global reduction in crude oil prices and related expenses, Gilly-Harris stressed the difficulties faced by retailers who buy products at higher rates and struggle to recover costs when prices drop shortly after purchase.
“When we buy at ₦880 per litre, and the price falls to ₦840, ₦850, ₦860, or even ₦870, it becomes extremely challenging to recoup our investment,” he noted.
Addressing the issue of price control and monopoly in the downstream sector, Gilly-Harris affirmed PETROAN’s commitment to sourcing products either through imports or local refineries. However, he warned that the survival of member businesses cannot be compromised.
“Yes, we have the capacity to import products and buy locally refined ones. But with prices consistently shifting without clear business consultations, the lack of stability remains a major concern,” he said.
He called on regulatory bodies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Consumer Protection Agency, to intervene and collaborate with industry stakeholders to establish a more stable pricing framework.
“We need these agencies to work together with stakeholders to create a stable market and ensure fair pricing,” Gilly-Harris emphasized.
The ongoing volatility in petrol prices, driven by competition and external economic factors, continues to pose a serious threat to the profitability and sustainability of retail businesses in Nigeria’s petroleum sector.
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