PETROAN condemns announcement of petroleum prices by individual, corporate body

•Urges President Tinubu to intervene in downstream cold war

THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has strongly condemned the announcement or pronouncement of petroleum product prices by any individual, corporate body.

This practice, PETROAN said, was contrary to the provisions of the Petroleum Industry Act (PIA) 2021, which clearly directs that petroleum product prices in the downstream sector should be determined by market forces and competitive commercial engagement.

“Section 205(1) of the PIA specifically states that wholesale and retail prices of petroleum products shall be based on unrestricted free market conditions, subject only to limited regulatory oversight and protection against monopolistic practices,” the group said in a statement signed and made available on Tuesday by the National Public Relations Officer, PETROAN, Dr. Joseph Obele.

Apart from this, the National President of PETROAN, Dr. Billy Gillis-Harry, called on President Bola Ahmed Tinubu to urgently intervene in resolving the ongoing cold trade war in the downstream petroleum sector.

The call is not unconnected with the current price war between petroleum product importers and the management of Dangote Refinery.

Gillis-Harry noted that the ongoing allegations and verbal attacks directed at the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the President of Dangote Group, Alhaji Aliko Dangote, were capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions.

PETROAN, at its Emergency Ordinary National General Meeting, in Abuja, passed a vote of confidence on the leadership of the NMDPRA under the leadership of its Chief Executive Officer, Engr. Farouk Ahmed.

This decision, the group said, followed the innovative reforms, strategic governance, and regulatory clarity introduced by the NMDPRA in the Nigerian downstream petroleum sector. According to the association, these interventions have significantly improved operational efficiency, transparency, and healthy competition within the industry.

PETROAN noted that the current regulatory framework has enhanced market discipline, encouraged fair play among operators, and created a more stable and competitive downstream environment, which ultimately benefits consumers and the national economy.

The association reaffirmed its commitment to supporting policies and regulatory initiatives that promote efficiency, sustainability, and growth in Nigeria’s downstream petroleum sector.

Of serious concern are the negative public statements made against Nigeria’s national refineries, suggesting that they are unattractive for investment.

PETROAN maintains that sound business ethics discourage running down another entity’s business, irrespective of competition.

PETROAN categorically stated that Nigeria’s four refineries are purchase-worthy and that the downstream petroleum sector remains business-friendly and attractive to both local and foreign investors.

“Furthermore, the unresolved issues involving NUPENG and PENGASSAN in relation to Dangote Refinery remain pending and continue to compound the crisis in the downstream sector.

PETROAN warns that if these disputes and the current cold war persist without timely resolution, the consequences could include supply chain disruptions, artificial scarcity of petroleum products, job losses, weakened investor confidence, regulatory instability, and unhealthy price manipulation.

“In addition, prolonged conflict among key stakeholders may expose the sector to market monopolisation risks, reduced competition, higher operational uncertainty for retail outlet owners, and increased pressure on consumers through unstable pricing regimes, with adverse implications for the broader economy.

PETROAN further emphasises that only constructive negotiation and fair commercial engagement can encourage importers who prefer international markets to patronise local refineries. Such engagement must not be driven by compelling or brutal price-ambushing strategies, which undermine market confidence and distort fair competition,” the statement read

PETROAN said it believed that the current dirty price war is already causing collateral damage to all parties involved.

“Most of the aggressive price crashes appear designed to frustrate importers and are often executed below cost. “Consequently, all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector,” the statement read

PETROAN advocated that the Nigerian National Petroleum Company Limited (NNPCL), under the leadership of its Group Chief Executive Officer, Engr. Bayo Ojulari, should hasten the process of engaging credible private-sector partners for the rehabilitation, management, or co-ownership of the national refineries.

This, PETROAN said, would prove that Nigeria’s refineries remain viable, commercially attractive, and capable of competing effectively, thereby dispelling negative perceptions and restoring confidence among investors and stakeholders.

The National President, Dr. Billy Gillis-Harry, therefore called on President Bola Ahmed Tinubu to intervene decisively in resolving both existing and emerging stakeholder disputes in the downstream sector, promote dialogue over confrontation, uphold the provisions of the PIA, ensure fair competition, and restore stability and confidence in the petroleum downstream industry.

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