Oil marketers in Nigeria have asked the regulatory agencies to step in and prevent further drops in fuel pump prices. Speaking under the aegis of the Petroleum

Products Retail Outlets Owners Association of Nigeria (PETROAN), they noted that the sudden price drops from the two big players have caused them business losses.

They urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Federal Competition and Consumer Protection Commission (FCCPC) to step in and protect their businesses from going under.

The PETROAN President, Dr. Billy Gillis-Harry, called on the regulators to protect smaller industry players by ensuring a stable market and stable fuel prices, not the current situation where the big players introduce sudden price slashes.

Dangote Refinery, NNPC slash prices

On the 26th of February 2025, Dangote Petroleum refinery slashed ex-depot price of petrol from N890 to N825, the second price cut in the month.

With the price slash, filling stations partnering with the refinery immediately started selling between N860 and N870.

The Nigerian National Petroleum Corporation Limited (NNPCL) soon followed suit, and soon, the dominant price became N860 to N870 in the Southwest states, N880 in the northern states, and N890 in the southeast states.

There have also been similar price cuts in the sale of diesel, causing other marketers who depend on petroleum imports huge losses.

Commenting on the ongoing price war, Bismarck Rewane, managing director of Financial Derivatives Company, says Nigerians will be the ultimate winners.

Oil marketers react to price drops

Even though the price drops have triggered positive reactions and commendations all around, the oil marketers claim that the sudden price drops may send them out of business.

Dr. Gillis-Harry explained that the oil marketers buy their products from every possible source, and unstable prices can lead to serious business shocks, the NATION reports.

“As much as we are making efforts to ensure that Nigerians have product availability from our end, as the last mile in the industry, we want to stay afloat in being liquid. The challenge we have is that we buy products today at a certain price, and before the close of business, the prices have reduced.”

He added that the marketers are unable to sell below their cost price, leaving them to compete with other outlets selling at N860 when they have a landing cost of about N890.

Gillis-Harry noted that a truly liberalized industry would allow a mix of imported products and local production, with no one left behind.

He called for a system where price changes are analysed and consultations done so that the industry does not suffer undue harm.