The Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concern over the declining pump prices of petrol by some operators, warning that such pricing does not align with current market and economic conditions.

PETROAN’s National President, Mr. Billis Gillis-Harry, stated in a recent interview with The Sun that this trend reflects poor market practices which, if unchecked, could destabilise the downstream sector.

Gillis-Harry attributed the situation to the consistent price reductions by the Dangote Refinery, which he said are forcing other marketers to slash prices unsustainably in a bid to stay competitive.

According to him, Dangote has cut prices more than 10 times in the past two months, with some stations selling at N815–N820 per litre, levels he insists are not viable.

He said:

“Those prices you see that are around N815 or N820 per litre don’t reflect market or economic realities. They cannot stand the test of time. The big player in the industry is to be blamed for this unhealthy rivalry/competition in the market.

"But let it be known that everyone is bleeding. The industry shouldn’t be a monopoly. Let it be known that if the big player is ready to lose money, others are equally ready as well.”

He cautioned that such practices may trigger a wave of anti-competitive behaviours, including fuel adulteration, under-dispensing, and supply of substandard products.

PETROAN calls for fair market practices

PETROAN called on regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate and ensure fair market practices.

While acknowledging Dangote’s contribution to the industry, Harry emphasised that business success should not come at the cost of monopolising the sector or endangering other operators.

He also reiterated PETROAN’s earlier criticism of Dangote’s forward integration strategy, warning that it could lead to widespread job losses and market dominance.

With its massive 650,000 bpd capacity, the refinery was expected to focus on global competition rather than downstream distribution.

The association alleged that Dangote’s pricing strategy could be aimed at squeezing smaller operators out of business, threatening the survival of independent marketers and thousands of jobs.

It also raised concerns over the deployment of 4,000 CNG-powered tankers by the company, which could further impact the livelihoods of existing truck drivers and transport operators.

Dangote names those frustrating oil sector reforms

Meanwhile, Aliko Dangote, the president of the Dangote Group, has blamed oil marketers and traders for attempting to frustrate Tinubu’s reforms.

The billionaire businessman said cabals in the oil industry include major oil marketers who are determined to frustrate Tinubu’s policies.

Dangote denied reports that he was accusing the NNPC management when he mentioned that oil cartels were trying to frustrate his refinery.