The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has observed activities of some downstream petroleum operators that are in clear violation of the Petroleum Industry Act (PIA) and has called on President Bola Ahmed Tinubu to urgently intervene in resolving the ongoing cold trade war in the downstream petroleum sector.
The National President of PETROAN, Dr. Billy Gillis-Harry, made this call in Abuja following the current price war between petroleum product importers and the management of Dangote Refinery.
The Association strongly condemns the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency, noting “This is contrary to the provisions of the Petroleum Industry Act (PIA) 2021, which clearly directs that petroleum product prices in the downstream sector should be determined by market forces and competitive commercial engagement. Section 205(1) of the PIA specifically states that wholesale and retail prices of petroleum products shall be based on unrestricted free market conditions, subject only to limited regulatory oversight and protection against monopolistic practices.”
The PETROAN categorically states that Nigeria’s four refineries are purchase-worthy, and that the downstream petroleum sector remains business-friendly and attractive to both local and foreign investors.
Furthermore, the unresolved issues involving NUPENG and PENGASSAN in relation to Dangote Refinery remain pending and continue to compound the crisis in the downstream sector.
The marketers warns that if these disputes and the current cold war persist without timely resolution, the consequences could include supply chain disruptions, artificial scarcity of petroleum products, job losses, weakened investor confidence, regulatory instability, and unhealthy price manipulation.
In addition, prolonged conflict among key stakeholders may expose the sector to market monopolization risks, reduced competition, higher operational uncertainty for retail outlet owners, and increased pressure on consumers through unstable pricing regimes, with adverse implications for the broader economy.
PETROAN further emphasizes that only constructive negotiation and fair commercial engagement can encourage importers who prefer international markets to patronize local refineries. Such engagement must not be driven by compelling or brutal price-ambushing strategies, which undermine market confidence and distort fair competition.
PETROAN believes that the current dirty price war is already causing collateral damage to all parties involved. Most of the aggressive price crashes appear designed to frustrate importers and are often executed below cost. Consequently, all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector.
It also advocates that the Nigerian National Petroleum Company Limited (NNPCL), under the leadership of its Group Chief Executive Officer, Engr. Bayo Ojulari, should hasten the process of engaging credible private-sector partners for the rehabilitation, management, or co-ownership of the national refineries. This, PETROAN believes, will prove that Nigeria’s refineries remain viable, commercially attractive, and capable of competing effectively, thereby dispelling negative perceptions and restoring confidence among investors and stakeholders.
Dr. Billy Gillis-Harry, therefore called on President Bola Ahmed Tinubu to intervene decisively in resolving both existing and emerging stakeholder disputes in the downstream sector, promote dialogue over confrontation, uphold the provisions of the PIA, ensure fair competition, and restore stability and confidence in the petroleum downstream industry.
He noted that the ongoing allegations and verbal attacks directed at the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the President of Dangote Group, Alhaji Aliko Dangote, are capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions.
The PETROAN, at its Emergency Ordinary National General Meeting held on Monday, passed a vote of confidence on the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) under the leadership of its Chief Executive Officer, Engr. Farouk Ahmed.
PETROAN stated that this decision followed the innovative reforms, strategic governance, and regulatory clarity introduced by the NMDPRA in the Nigerian downstream petroleum sector. According to the association, these interventions have significantly improved operational efficiency, transparency, and healthy competition within the industry.
It further noted that the current regulatory framework has enhanced market discipline, encouraged fair play among operators, and created a more stable and competitive downstream environment, which ultimately benefits consumers and the national economy.
The Association reaffirmed its commitment to supporting policies and regulatory initiatives that promote efficiency, sustainability, and growth in Nigeria’s downstream petroleum sector.
Of serious concern are the negative public statements made against Nigeria’s national refineries, suggesting that they are unattractive for investment. PETROAN maintains that sound business ethics discourage running down another entity’s business, irrespective of competition.