Condemning the unhealthy competition in the downstream sector, which has resulted in sudden downward review of fuel prices, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is calling on the Nigerian Midstream and Downstream Petroleum....Read Full Article >>➤
Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to establish mechanisms that will ensure price stability for at least six months.
This approach, the association, in a statement signed by its National Public Relations Officer, Dr Joseph Obele, on Monday, said would help reduce the uncertainty and risk associated with investments in the sector, ultimately promoting economic development and protecting the interests of consumers and Nigerians.
The association stressed that the sudden downward review of prices has resulted in massive losses of members, with those affected counting their losses in billions of naira.
This situation, it said, posed a significant fear for further investment in the sector as investors are wary of unpredictable market conditions.
While calling for healthy competition, full liberalization, and price stability in the downstream sector, the association called on NMDPRA to quickly swing into action to ensure fair pricing.
Stressing the need for NMDPRA’s intervention, it said: “The threat of price fluctuations is affecting the business boom of the sector, which will definitely lead to retrenchment.
“This will have far-reaching consequences, including job losses and economic instability.”
The association called for a collaborative approach among stakeholders, including government agencies, regulatory bodies, and industry players, to establish mechanisms that promote price stability.
“We believe that by working together, industry stakeholders, government, and consumers, we can create a vibrant, competitive market that benefits everyone.
“Let us unite in our efforts to ensure that the downstream sector not only meets the needs of today but also paves the way for a sustainable and prosperous future,” the statement read.
“This includes transparent pricing models, effective regulation, and strategic reserves that can be tapped into during times of crisis,” it read.
To achieve these goals, the association advocated for sound policies and regulations that support a competitive and stable market. “This includes establishing clear and fair regulations that govern market practices, ensuring that all players adhere to the same standards.
On consumer protection, it called for implementation of measures that protect consumers from unfair pricing and practices, ensuring that they have access to quality products at reasonable prices.
Fluctuating prices, market monopolies, and unhealthy competition, the association sais could undermine the very foundations of Nigeria’s economy and the trust of citizens.
The statement read: “ After due consultation with key stakeholders and players in the petroleum sector, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has taken a firm stance on promoting healthy competition and controlling price fluctuations in the downstream sector.
“To this effect, PETROAN advocates the importance of preventing monopolies and ensuring local refineries thrive, given their significant economic benefits
to the country,” it read.
Stressing the importance of healthy competition, it said it’s essential for fostering innovation, improving service delivery, and ensuring that consumers have access to affordable products.
“When competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth.
PETROAN firmly believes that a competitive downstream sector is not just beneficial but necessary.
“To achieve this, PETROAN advocates for a multiplicity of supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports,” the statement read.
Diverse range of sources, it said would foster competition, especially with imports, allowing for comparisons with international market prices and protecting the local market from exploitation.
“We advocate for policies that dismantle barriers to entry for new players, promote fair practices among existing companies, and ensure that no single entity can dominate the market to the detriment of consumers,” the association said.
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