Fluctuating fuel prices are posing significant risks to businesses in Nigeria’s oil sector, particularly for oil marketers.
President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, expressed concerns about the adverse effects of volatile petrol prices on their operations.
The recent price war between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has led to frequent price changes, making it challenging for oil marketers to recover costs effectively.
Gilly-Harris emphasized the importance of collaboration among stakeholders to ensure product affordability while maintaining business liquidity.
Oil marketers are facing significant challenges, including unpredictability in pricing, financial sustainability, and concerns about monopolistic practices within Nigeria’s downstream sector.
Many oil marketers are facing substantial losses, threatening the viability of their businesses.
To address these issues, Gilly-Harris called upon regulatory bodies, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and consumer protection agencies to collaborate with industry stakeholders.
The goal is to establish a more stable market environment with predictable pricing structures, ensuring the sustainability of businesses in Nigeria’s oil sector.
The development comes as the Nigerian government continues to grapple with the challenges of the oil sector, including price volatility and its impact on businesses and consumers.
