PETROAN Reveals Shocking Truth Behind Petrol Price Hikes In Nigeria

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has attributed the recent increase in Premium Motor Spirit (PMS) prices to rising crude oil costs in the global market.....KINDLY READ THE FULL STORY HERE▶

According to PETROAN, Brent crude oil, a global benchmark, is currently priced at $80.85 per barrel, while WTI crude and the OPEC basket stand at $78.82 and $81.72 per barrel, respectively. These figures represent a four-month high, spurred by new U.S. sanctions on Russian oil.

In a statement by PETROAN President, Dr. Billy Gillis-Harry, the organization noted that Section 205 of the Petroleum Industry Act (PIA) allows petrol prices to be determined by market forces rather than government intervention. This shift means that the Nigerian National Petroleum Corporation (NNPC) and the federal government no longer set fuel prices, leaving marketers and refiners to adjust rates based on crude oil fluctuations.

Gillis-Harry emphasized that the volatility of crude prices is directly impacting domestic petrol costs and creating challenges for retailers. “This constant fluctuation is taking a toll on retail outlets; it affects our operations significantly,” he said.

The association’s National Public Relations Officer, Dr. Joseph Obele, reiterated that PETROAN members are not responsible for the price increases, explaining, “Our selling rate reflects our buying rate. The current hike is an external issue beyond our control.”

To address the crisis, PETROAN has urged the government to privatize its refineries and promote competition in the downstream sector. The association believes privatization would improve efficiency, cut government expenditure, and stabilize the fuel market.

Additionally, PETROAN advocates for increased competition in the downstream sector, arguing that it would ensure fairer pricing, better services, and a more consistent supply of petroleum products to benefit Nigerian consumers.