The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has responded to the demand by civil servants for a reduction in petrol price to N500 per litre. In an interview, PETROAN's National President, Billy Gillis-Harry, stated that achieving this price reduction would be a "miracle" given the current downstream petroleum market realities. He emphasized that such a demand is practically impossible to fulfill.
Gillis-Harry noted that returning to the era of fuel subsidies would be risky, as it previously pushed the country to the brink. He advised those advocating for the N500 per litre price to take concrete steps by building their own refineries and filling stations to dispense petrol at that price. This, he believes, is a more feasible way to offer the product at a lower price.
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), recently met with oil and gas stakeholders to discuss competitive fuel pricing. This meeting comes as Dangote Refinery reduced its petrol price by N25 per litre to N1,325 per litre, following a drop in crude oil prices. The developments reflect ongoing efforts to address fuel pricing concerns in Nigeria.
Gillis-Harry's comments highlight the complexities of the fuel pricing debate in Nigeria. The country has struggled with fuel subsidies in the past, and the current market realities make it challenging to reduce prices significantly. PETROAN's stance underscores the need for a sustainable solution that balances the interests of various stakeholders.
The demand for a N500 per litre petrol price was made by civil servants under the Joint National Public Service Negotiating Council. They are urging President Bola Ahmed Tinubu to intervene and reduce the fuel price. However, PETROAN's advice suggests that building local refineries could be a more effective way to achieve lower fuel prices.
The Nigerian government is exploring ways to address fuel pricing concerns, including engaging with stakeholders and monitoring market trends. The Dangote Refinery's recent price reduction is seen as a positive step towards making fuel more affordable. However, the broader challenge of balancing economic realities with consumer needs remains.
As the fuel pricing debate continues, PETROAN's advice to build local refineries has sparked interest among stakeholders. The idea of encouraging local production to influence prices is seen as a potential long-term solution. However, its implementation would require significant investment and infrastructure development.
Key points
- PETROAN advises workers demanding N500/litre petrol to build own refineries.
- Fuel price reduction to N500/litre is practically impossible, says PETROAN.
- Dangote Refinery recently reduced petrol price to N1,325 per litre.
