The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to regulate the frequent downward review of petroleum product prices, warning that unchecked price fluctuations are causing financial instability and losses in the downstream sector.
In a statement released yesterday, PETROAN expressed concern over the volatility of fuel prices, noting that continuous reductions without a structured framework are discouraging investment, threatening job security, and destabilising the industry.
“The frequent downward adjustment of petroleum product prices is leading to significant financial losses for investors and stakeholders in the sector,” PETROAN stated.
“This unpredictability is unsustainable and requires urgent regulatory intervention to ensure stability.”
To address the challenges, PETROAN has proposed the introduction of a regulatory framework that ensures price stability for at least six months. The association argued that such a measure would allow investors to plan effectively, maintain operational efficiency, and sustain employment levels.
“We need a structured approach to pricing that balances affordability for consumers with sustainability for businesses,” said Dr Joseph Obele, PETROAN’s National Public Relations Officer.
The association also advocated for diversified supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports, to prevent monopolistic pricing and encourage healthy competition.
PETROAN commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) for their ongoing efforts to regulate the sector. However, the group urged them to intensify monitoring to prevent market distortions and unfair practices.
“We urge NMDPRA to take decisive action in ensuring a fair and competitive market where both investors and consumers are protected from the negative impact of erratic price changes,” Obele added.
The association called for increased collaboration among stakeholders to develop transparent pricing models, strengthen regulatory oversight, invest in infrastructure, and support sustainability initiatives. These steps, PETROAN believes, will create a resilient and competitive downstream sector.
PETROAN reaffirmed its commitment to advocating for full liberalisation, fair competition, and economic growth in Nigeria’s petroleum industry, stressing that a well-regulated market is essential for long-term stability and prosperity.
