Oil marketers under the aegis of the Petroleum Products Retail Outlet Owners Association of Nigeria have condemned the constant reduction of fuel prices, saying marketers are still counting losses.

Despite deregulation, PETROAN said there is a need for a regulation that will make it mandatory that prices can only be changed after six months.

In a statement by PETROAN Publicity Secretary Joseph Obele, the association also made a u-turn, saying imports should be encouraged to put an end to monopoly.

Recently, the Dangote refinery dropped the price of Premium Motor Spirit (petrol) from N890 per litre to N825 at the gantry.

This forced the Nigerian National Petroleum Company Limited to follow suit by lowering its pump price to N860 per litre.

Speaking about price stability, the association argued that volatile fuel prices can have a ripple effect throughout the economy, impacting transportation costs, food prices, and the overall cost of living, saying sudden spikes in fuel prices can lead to financial strain and uncertainty.

“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.

“Moreover, 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.

“To address these challenges, PETROAN proposed that regulatory authorities establish mechanisms to encourage price stability for at least six months. This approach will 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 statement stated..

PETROAN called for a collaborative approach among stakeholders, including government agencies, regulatory bodies, and industry players, to establish mechanisms that promote price stability, including transparent pricing models, effective regulation, and strategic reserves that can be tapped into during times of crisis.

Our correspondent observes that some importers selling petrol at N945 in Lagos have now adjusted their prices, selling below N900. This, it was learnt, has led to losses as the importers sell below their costs.

While emphasising the critical role that the downstream sector plays in the nation’s economy, Obele said the sector is facing challenges like fluctuating prices, market monopolies, and unhealthy competition that can undermine the foundations of the economy and the trust of our citizens.

“After due consultation with key stakeholders and players in the petroleum sector, the Petroleum Products Retail Outlets Owners Association of Nigeria 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,” he stated.

He highlighted the importance of healthy competition, saying that 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. This diverse range of sources will 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,” he added.

The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission “for their efforts in promoting healthy competition.”

However, the association also urged these regulatory bodies to remain vigilant and prevent unfair competition practices.

To achieve these goals, Obele added that players must advocate for sound policies and regulations that support a competitive and stable market.

This includes establishing clear and fair regulations that govern market practices, and ensuring that all players adhere to the same standards.

PETROAN also called for implementing measures that protect consumers from unfair pricing and practices, ensuring that they have access to quality products at reasonable prices.

The association encouraged investment in infrastructure to support the downstream sector, including refineries, distribution networks, and storage facilities.

“PETROAN is firmly committed to the Petroleum Industry Stakeholders Forum and stands firm to advocating for healthy competition, full liberalisation, and price stability in the downstream sector. We urgently urge NMDPRA to quickly swing into action to ensure fair pricing.

“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. Together, we can build an industry that is resilient, competitive, and fair for all,” the statement concluded.

Petroleum Products Retailers and marketers have explained why petrol imports have persisted despite the Dangote Refinery and other local refineries’ production capacity.

The President, Petroleum Products Retail Outlet Owners Association and the Chairman, Major Marketers Association of Nigeria, Billy Gillis-Harry and Tunji Oyebanji in an exclusive interview with DAILY POST on Monday cited fear of healthy market competition, competitive pricing and inadequate petrol production capacity as reasons for the product’s continued import.

This comes amid the National Bureau of Statistics’ foreign trade data showing that petrol imports surged by 105 percent to N15.4 trillion at the end of 2024.

Similarly, the report indicated that fuel imports hit N930 billion in February 2025 alone, raising concerns among stakeholders in the country’s downstream sector.

Recall that the Nigerian Midstream and Downstream Petroleum Regulatory Authority said that Dangote Refinery, Port Harcourt and Warri refineries met only 50 percent of the national petroleum products consumption requirement in February 2025. #

However, in a statement last month, the president of Dangote Refinery countered NMDPRA and insisted that the $20 billion Refinery can meet 100 percent of Nigeria’s 100 percent petroleum production requirements.

Nigerians are now left in limbo amid the controversy as NNPC said it has not imported petrol so far in 2025.

Meanwhile, Gillis-Harry and Oyebanji in their insights to DAILY POST put clarity to the debate.

Speaking, Gillis-Harry insisted that petroleum retailers get their products from all sources, including Dangote Refinery, NNPC and import.

According to him, petrol retailers will continue to get fuel from sources with the best pricing to avoid a monopoly of the country’s petroleum downstream.

He frowned at a situation where the refinery would reduce fuel prices overnight without due consultation with its partners and retailers.

Gillis-Harry added that healthy competition and price stability must be guaranteed in Nigeria’s downstream sector for the good of Nigerians.

“Retailers are not running away from Dangote Refinery. We patronize every refinery, but we subscribe to full liberation so that we will not run a monopolized downstream sector.

“We cannot buy a product at N889, and over the night, the prices are dropped to N825, which is unfair.

“We continue to buy petrol from all sources that are profitable to us, either NNPCL, Dangote Refinery or through import”, he told DAILY POST.[/b]

On his part, Oyebanji explained that local refineries such as Dangote Refinery were not meeting 100 percent of domestic demand- the reason for fuel import to augment the vacuum.

According to him, if local refineries produced enough to meet the domestic market and with competitive prices, no right-thinking businessman would import.

“The report circulated today was for 2024. I don’t understand why it is being played up in the media as if it is new.

“So, to prevent shortages, some importation is being allowed, but to give the impression that such importation is growing isn’t correct.

“NNPCL, which has been the largest importer up to last year, has confirmed that they have not imported and yet someone is pushing this narrative.

“If local refineries produce enough to satisfy local demand and sell at a competitive price, then no right-thinking businessman will import”, he told DAILY POST.

Recall that earlier this month and last month, NNPC and Dangote refineries reduced petrol prices to between N860 and N880 per liter.

The development sparked a price war among the bigwigs in the country’s downstream sector, as Nigerians now buy petrol between N860 and N970 per liter nationwide.

On October 15, 2024, 650, 000 barrels per day, Dangote Refinery kicked off supply of petrol.

At the same, NNPC restarted petrol production at the Port Harcourt and Warri refineries in November and December 2024.

Nigeria Spends N930bn on Fuel Imports in February Despite Rising Local Refining Capacity

Nigeria imported petrol and diesel in February 2025 valued at about N930 billion, despite rising local refining capacity, raising questions as to the economic sense behind the licensing of oil marketers to bring in fresh petroleum products.

Data on the importation of the fuels last month, showed that aside from the N930 billion bill in February, oil marketers licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), imported products worth N5.5 trillion between October 2024 and January this year.

However, this development is taking place despite the growing capacity of the Dangote Refinery as well as the Port Harcourt Refinery owned by the Nigerian National Petroleum Company (NNPC). Both refineries produce petrol.

In addition, the Warri Refinery as well as other modular refineries scattered mostly in the Niger Delta, refine diesel locally.

In February this year, the petroleum products import licensing body, the NMDPRA, argued that it had continued to approve oil marketers to bring in products, to address shortfalls in the country. It disclosed that the local refinery only meets 50 per cent of daily fuel consumption, justifying the continued importation of petrol to meet the deficit.

Executive Director of Distribution, Systems, Storage, and Retailing Infrastructure of NMDPRA, Ogbugo Ukoha, told journalists: “Just before the current administration came in, the daily PMS (Premium Motor Spirit) supply sufficiency was always more than 60 million.

“In fact, averaging about 66 million a day for PMS. And following Mr. President’s withdrawal of subsidy, the announcement of May 29th, 2023, we immediately saw a steep decline in consumption. And between then and as we speak, we’ve continued to do plus or minus 50 million.

“Of these 50 million litres averaging for each day, less than 50 per cent of that is contributed by domestic refineries. And so the shortfall in accordance with the Petroleum Industry Act (PIA) is sourced by way of imports. So just for clarity, what I’m saying is that the contribution of local refineries towards the sufficiency is less than 50 per cent.”

But President of Dangote Industries Limited (DIL), Aliko Dangote, also speaking in February, said that his refinery holds over 500 million litres of petrol and N600 billion worth of total petroleum products in stock.

A Business Consultant, Mr Dan Kunle, agreed with this position, stating that the sustained import dependency by Nigeria could erode recent gains in the stability of the naira.

In all, the import data for February 2025 indicated that Nigeria brought in 701.75 million litres of petrol and 265.88 million litres of diesel during that month.

Based on landing cost estimates from the Major Oil Marketers Association of Nigeria (MOMAN) as of February 20, the total import bill in February is believed to have exceeded N650.8 billion, while diesel amounted to over N278.5 billion.

The fuel tanker vessels came mainly through Lagos and Port Harcourt, Calabar, and Warri ports.

The NNPC Group CEO, Mele Kyari had stated that the company had not imported petrol this year.

“These significant import figures come at a time when local refining output is increasing. Two of NNPC’s four refineries, in Warri and Port Harcourt, have reportedly resumed operations, while private refineries such as Dangote Refinery, Waltersmith, and Aradel are actively producing.

“Despite these positive developments, the continued large-scale importation of refined petroleum products underscores structural bottlenecks in the industry, including logistics challenges, production scale-up issues, and supply chain inefficiencies,” Kunle explained.

According to him, reducing import reliance will require accelerated refinery optimisation, competitive local pricing structures, and strengthened regulatory frameworks to incentivise domestic supply over costly imports.

Kunle stressed that the continued large-scale dollar-denominated imports could reverse these gains that the naira garnered in the last few months, putting additional pressure on foreign exchange reserves.

The Nigeria National Petroleum Company (NNPC) Limited has discontinued the naira-for-crude deal with Dangote Petroleum Refinery and other local refineries, TheCable understands.

The development could trigger an uptick in the pump price of petrol as local refineries — including Dangote — will now rely on international suppliers for feedstock, gulping huge costs in dollars.

The NNPC reportedly told the refineries it has forward-sold all its crude, although production is now said to be higher than when the deal commenced.

Nigeria officially commenced the sale of crude oil and refined petroleum products in naira to local refineries on October 1, 2024.

The move was meant to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.

However, multiple sources said the initiative will be suspended until 2030.

A high-level source confirmed that the NNPC has notified Dangote Petroleum Refinery and other local refiners that it will no longer provide crude oil to them, as it has forward-sold all of its crude supplies until 2030.

Despite recent attempts to bolster domestic refining capacity, the country has spent “over $4.3 billion importing 6.38 billion litres of premium motor spirit (petrol) and automotive gas oil (diesel) in just five months”, industry sources said.

The NNPC is said to be among the entities still importing products, an act backed by the recent deregulation of the downstream sector.

Another source said at a time when Nigerians are hoping for further price reductions, “the NNPC unilaterally decided to end the naira-for-crude initiative”.

TheCable has contacted the NNPC for comments.

While the Dangote refinery has declined to comment on the NNPC’s recent move, an official said the company will carefully assess its options and decide on the appropriate course of action.

The decision to stop the naira-based crude supply might lead to volatility in the foreign exchange (FX) market, thereby eroding recent gains, according to market analysts.

THE TROUBLED CRUDE-FOR-NAIRA DEAL

In October 2024, the federal executive council (FEC) approved the allocation of 450,000 barrels of crude intended for domestic consumption to be sold in naira to Nigerian refineries, with the Dangote refinery serving as a pilot project.

Under the scheme, the NNPC was expected to supply 385,000 barrels per day of crude oil to the Lekki-based refinery.

However, the national oil firm has been accused of consistently failing to meet the allocation.

In November 2024, the refinery said the crude-for-naira initiative was faltering, as it was still unable to secure adequate supplies.

“We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” Edwin Devakumar, the vice-president of Dangote Industries Limited (DIL) had said.

He further described the NNPC’s supply as “peanuts”.