Billions Lost as PMS Prices Plunge Suddenly – Petroanoc Internacional

In the midst of the intense pricing battle within the petroleum sector, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned against monopolistic practices and unjust competitive tactics in the oil distribution segment yesterday.

He called for vigorous competition but also highlighted the necessity of robust regulatory oversight to prevent pricing fluctuations and safeguard investments.

Against the background of the recently decreased prices for premium motor spirit (PMS), also referred to as petrol, by both the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), representatives from petroleum dealers voiced their opinions.

After the announcement of a reduction in prices by the Dangote Refinery by 65 naira at the ex-depot level, the retail cost at Dangote-affiliated fueling stations decreased from 925-930 naira down to 860 naira.

Shortly thereafter, the NNPCL also lowered its prices at its retail outlets as the competition intensified between the two leading companies.

However, the PETROAN, as stated by its National Public Relations Officer, Dr. Joseph Obele, called upon regulatory bodies to foster fair competition and maintain stable pricing within the nation’s downstream petroleum industry. This move aims to deter monopolistic practices and safeguard domestic refineries.

“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has firmly committed itself to fostering fair competition and stabilizing price variations within the downstream sector,” he stated.

He mentioned that the recent decrease in prices led to significant losses amounting to billions of naira.

The PETROAN said, ‘The association stressed that the sudden downward review of prices has resulted in massive losses, with those affected counting their losses in billions of naira. This situation poses a significant fear for further investment in the sector, as investors are wary of unpredictable market conditions.

Furthermore, the potential for price swings is impacting the growth within the industry, inevitably resulting in layoffs. These effects will extend widely, leading to employment reductions and economic unrest.

To tackle these issues, PETROAN suggested that regulatory bodies create incentives to ensure pricing stability for a minimum period of six months. Implementing this strategy would decrease uncertainties and risks linked to investments within the industry, thereby fostering economic growth and safeguarding the welfare of both consumers and Nigerians.

Obele highlighted the importance of diversifying supply sources, which should include the Dangote Refinery, NNPC refineries, modular facilities, as well as imported products.

The organization asserted that a varied supplier network would facilitate competition among domestically produced and internationally sourced petroleum goods, guaranteeing equitable prices and protecting the marketplace from potential abuse.

Provided by SyndiGate Media Inc.
Syndigate.info
).