The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has explained why its members should not be held responsible for the recent hike in petrol prices, attributing the increase to external factors.
In a statement released on Tuesday, the National President of PETROAN, Dr. Billy Gillis Harry, clarified that the surge in crude oil prices has directly impacted domestic petrol prices.
“It’s no longer funny; even retail outlet owners are affected by this constant fluctuation of prices. It affects our business,” he said.
Dr. Joseph Obele, PETROAN’s National Public Relations Officer, further quoted the president, stating: “Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor.”
Obele emphasized that PETROAN members cannot sell petrol below their purchasing cost, noting that crude oil benchmarks, such as Brent crude, currently stand at $80.85 per barrel. WTI oil and the OPEC basket are priced at $78.82 and $81.72 per barrel, respectively. These figures represent a four-month high, partly due to new sanctions imposed by the US on Russian oil.
He cited Section 205 of the Petroleum Industry Act (PIA), which establishes that petrol prices are driven by market forces, with the government and NNPC no longer controlling prices. As such, refiners in Nigeria are expected to adjust prices based on crude oil market trends.
Dr. Harry called for the privatisation of government-owned refineries to promote competition in the downstream sector.
He argued that privatisation would reduce the government’s financial burden, enhance efficiency, and improve productivity in the oil sector.
He also urged the government to create a more supportive business environment for retail outlet owners by providing access to affordable financing and infrastructure development.
Such measures, he said, would help stabilize the market and benefit consumers in the long term.
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