Major Energies Marketers Association of Nigeria (MEMAN) has said its position remains that government arbitrary price caps are not the solution to petroleum market challenges.
It stated that rather than distorting market prices, the focus should be on transparent, market-driven pricing, efficient distribution and measures that address supply bottlenecks and reduce operating costs.
Chief Executive Officer, MEMAN, Mr. Clement Isong, spoke during the third quarter press engagement webinar organised by MEMAN through the Industry Competency Centre in partnership with S&P Global Energy on Thursday. Participants at the webinar discussed developments in global and West African refined petroleum markets and explored measures to strengthen Nigeria’s domestic petroleum distribution framework.The discussions also highlighted opportunities to improve efficiency and reduce costs through greater adoption.
Isong said that a well -structured market should enable competition, improve supply security and support better outcomes for consumers without relying on government -imposed price controls or broad -based fuel subsidies.
He outlined priorities for improving the efficiency and resilience of Nigeria’s domestic distribution market, including supply coordination: Prioritising domestic refinery output while using imports to bridge supply gaps and manage disruptions; and pricing predictability: Exploring transparent pricing mechanisms that help marketers manage price volatility without government -imposed price caps.
Others, according to him, include: bulk supply arrangements: establishing clearer terms for product access, pricing, delivery schedules and contractual obligations; distribution efficiency: Improving inventory visibility, storage capacity, transportation coordination and contingency planning; fair competition and regulation: Promoting transparent market data, non-discriminatory access and and efficient regulatory processes.
He also harped on quality, quantity and customer service: Upholding product quality standards, ensuring accurate measurement and delivery of the quantities customers pay for, and maintaining high standards of customer service to strengthen consumer confidence and trust in the downstream petroleum market.
The MEMAN CEO commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its progress in promoting product quality, digitalising licensing, publishing useful market data and advancing measures to foster fair competition.
He opined that a well -structured market should enable competition, improve supply security and support better outcomes for consumers without relying on government -imposed price controls or broad -based fuel subsidies.
Associate Editorial Director, EMEA Clean Refined Products, S&P Global Energy, Mr. Gary Clark – highlighted how geopolitical tensions, refining disruptions and changing global supply dynamics have contributed to petroleum product price volatility, with middle distillates, particularly diesel and aviation fuel, facing significant pressure.
Lead Specialist, Africa Refined Products Pricing, S&P Global Energy, Mr. Matthew Tracey -Cook emphasised the need for regional pricing benchmarks that better reflect West African market conditions. He argued that the FOB West Africa (FOBWAF) and STS Lome assessments provide reference points for domestically supplied and imported refined products , respectively. Greater transparency, reliable market data and industry adoption will be essential to building a credible reference market.
