THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for the supply of petroleum products from multiple sources to guard against monopoly and unhealthy competition.

The association made the call in a statement on Monday, March 10 by its national Public Relations Officer (PRO), Joseph Obele.

It arrived at the suggestion after consultation with key stakeholders and players in the petroleum sector, the statement says, adding that it has taken a firm stance on promoting healthy competition and controlling price fluctuations in the downstream sector.

“To achieve this, PETROAN advocates for a multiplicity of supply sources, including Dangote Refinery, NNPC refineries, modular refineries, and imports,” the association stated.

PETROAN said it firmly believes that a competitive downstream sector is not just beneficial but necessary.

“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,” the statement maintained.

It said the importance of healthy competition is essential for fostering innovation, improving service delivery, and ensuring that consumers have access to affordable products, stressing that when competition thrives, it leads to better choices for consumers and ultimately contributes to economic growth.

Noting the importance of the downstream sector in any economy, it said, “It is the lifeblood that fuels our industries, powers our homes, and drives our transportation systems.

“However, this sector is not without its challenges. Fluctuating prices, market monopolies, and unhealthy competition can undermine the very foundations of our economy and the trust of our citizens.”

To this effect, PETROAN  advocated that there is a need to prevent monopolies and ensure local refineries thrive, given their significant economic benefits to the country.

The ICIR can report that recent developments show the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery are engaged in a price war.

The Dangote refinery had repeatedly dropped the gantry price of its refined petroleum product and reached a fixed pump price with its retail outlet partners as the NNPCL followed suit in reducing pump prices across its outlets.

The most recent drop in petrol pump prices was when the Dangote refinery fixed the price at N860 in Lagos and adjusted the price for other states, and NNPCL followed suit.

PETROAN further called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to tighten their efforts in promoting healthy competition.

It also urged the regulatory bodies to remain vigilant and prevent unfair competition practices.