WorldStage– The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for urgent intervention from President Bola Ahmed Tinubu, the National Assembly’s House Committee on Petroleum Midstream and Downstream Sectors, and other relevant authorities to address the ongoing crisis in Nigeria’s downstream petroleum sector.
PETROAN’s spokesperson, Joseph Obele, quoting the National President, Billy Gillis-Harry, condemned the recent arbitrary announcements of petroleum prices, emphasising that such actions contravene the Petroleum Industry Act (PIA) of 2021.
It is recalled that the president of Dangote Refinery petitioned the Independent Corrupt Practices and Other Related Offences Commission over alleged corruption by the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.
According to Dangote, he allegedly paid $5 million for his four children’s tuition in Swiss secondary schools. He claimed that Ahmed encouraged importers to frustrate his N20 billion refinery, which recently reduced petrol from N929 to N699 per litre to edge out importers.
Reacting, PETROAN President Gillis-Harry condemned Dangote’s arbitrary reduction of fuel prices. He stated that, according to the Petroleum Industry Act, petroleum product prices should be determined by market forces and fair commercial practices, with oversight to prevent monopolistic behaviour.
Gillis-Harry highlighted that the price disparities between petroleum product suppliers and the Dangote Refinery are exacerbating the crisis.
He further expressed concern over disparaging remarks made by Aliko Dangote, president of Dangote Group, which PETROAN argues could undermine investor confidence and weaken Nigeria’s regulatory framework. Despite this, the association reaffirmed its confidence in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as the principal institution regulating the country’s oil sector.
The association also warned that prolonged discord among industry stakeholders risks monopolisation, reduces competition, and creates unstable pricing that negatively affects consumers and the economy.
PETROAN criticised the ongoing price war, characterised by predatory pricing, which it argues is unsustainable and harmful to the long-term stability of Nigeria’s oil sector.
PETROAN called on the Nigerian National Petroleum Company Limited (NNPCL) to accelerate efforts to engage private-sector partners in revamping Nigeria’s refineries and restoring investor confidence.
The association urged all parties to prioritise constructive negotiations to stabilise the sector.
“PETROAN unequivocally condemns any pronouncement or announcement of petroleum product prices by individuals, corporate bodies, or agencies.
“Such actions directly contravene the provisions of the Petroleum Industry Act (PIA) of 2021, which explicitly stipulates that downstream petroleum prices should be determined by market forces and fair commercial practices. Section 205(1) of the PIA mandates that wholesale and retail prices be based on unrestricted free-market conditions, with regulatory oversight primarily aimed at preventing monopolistic practices.
“PETROAN expresses full confidence in the capacity and integrity of NMDPRA as the regulatory authority entrusted with overseeing Nigeria’s downstream petroleum sector.
“We call on President Tinubu, the leadership of the House Committee on Petroleum Midstream and Downstream Sectors, and relevant authorities to work collaboratively with NMDPRA to restore stability, uphold the provisions of the PIA, ensure fair competition, and foster an environment conducive to sustainable growth in the downstream industry.”
