Fuel Price Relief: Independent Marketers Demand 30% Of NNPC’s Discounted Petrol Supply

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to allocate independent petroleum marketers at least 30 per cent of the discounted petrol supply available through the Nigerian National Petroleum Company Limited (NNPCL).

The association said extending the initiative to independent marketers would improve petrol availability, make the price reduction accessible to more Nigerians and ease the long queues often seen at NNPC retail outlets.

According to Bush Radio Academy, PETROAN President, Billy Gillis-Harry, made the appeal during an interview with Arise News, arguing that NNPC-owned filling stations alone might not be sufficient to distribute the discounted product efficiently across the country.

Gillis-Harry explained that the association’s request for 30 per cent represented a minimum allocation, adding that the share could increase depending on the terms agreed with the NNPC.

He noted that with more than 230 million Nigerians relying on petroleum products for their daily economic activities, expanding distribution through independent filling stations would help improve access to petrol.

According to him, the NNPC’s retail network, despite its size, might struggle to meet demand nationwide without the support of additional outlets.

The PETROAN president also explained that independent marketers needed access to the discounted product to offer more competitive prices without severely affecting their profit margins. He argued that independent businesses did not have the same financial capacity as the NNPC to absorb reductions in profit.

Gillis-Harry stressed that the association was not asking the government or the NNPC to provide petrol free of charge. Instead, PETROAN wants to purchase the discounted product and distribute it through its members’ filling stations across the country.

He said the arrangement would allow independent marketers to complement the NNPC’s efforts and extend the benefits of the initiative to communities where NNPC retail outlets might be limited.

To illustrate his argument, Gillis-Harry said a city with a population of about three million people would be better served by having 1,000 or 2,000 filling stations distribute petrol rather than depending on just 15 outlets.

He added that if the NNPC had one billion litres of petrol available under the initiative, PETROAN would seek at least 300 million litres for distribution through its members.

“We will pay NNPC for the product; they don’t give us product for free. Our proposal is simply: if you have one billion litres to supply through this method, give us 30 per cent, which is 300 million litres, and we can extend it to our members without making it much more expensive,” he said.

Gillis-Harry maintained that the proposal was designed to address two major concerns facing consumers: affordability and availability. He warned that if independent marketers continued sourcing petrol at higher prices, customers could increasingly turn to NNPC stations offering discounted fuel, potentially worsening queues at those outlets.

He argued that distributing the product through a wider network of filling stations would spread demand and make it easier for motorists and other consumers to purchase petrol.

The PETROAN president also rejected suggestions that the NNPC’s discounted petrol initiative represented a return to fuel subsidy. He explained that a subsidy would involve the government paying the difference between the landing cost of petrol and the amount charged at the pump.

According to Gillis-Harry, the current arrangement involves the NNPC reducing part of its profit to offer petrol at a lower price, rather than the government directly covering the difference.

He said the NNPC was expected to provide a discount of ₦16 from its profit under the arrangement, adding that the company could source its petrol from local refineries or through imports before applying the price reduction.

Gillis-Harry also expressed reservations about a proposal to set a ceiling of ₦1,350 per litre for petrol landing costs. He argued that fixing such a benchmark in advance could become problematic if international or market conditions caused landing costs to fall below the stipulated amount.

He questioned what would happen if the landing cost dropped to ₦1,250 per litre after a ₦1,350 ceiling had been established, insisting that the government should avoid policies that could interfere with market movements.

The association maintained that its proposal would not introduce a separate pricing system. Gillis-Harry said PETROAN members would sell the discounted petrol at the same price as NNPC retail outlets if the request received government approval.

He added that the association had already submitted its proposal to the Federal Government and was awaiting an official response. He expressed hope that the request would be approved, arguing that greater participation by independent marketers would help the initiative reach more Nigerians.