PETROAN Explains Why Nigerians Are Facing Record Petrol Prices

PETROAN Explains Why Nigerians Are Facing Record Petrol Prices

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has attributed the recent increase in the price of Premium Motor Spirit (PMS) to the rising global crude oil prices. According to PETROAN, Brent crude oil is currently priced at $80.85 per barrel, with WTI oil and the OPEC basket at $78.82 and $81.72 per barrel, respectively.

These prices have reached a four-month peak, following new sanctions imposed by the U.S. on Russian oil. PETROAN’s president, Dr. Billy Gillis-Harry, emphasized that under the Petroleum Industry Act (PIA), petrol prices are now determined by market forces, rather than government regulation. This means that the Nigerian National Petroleum Corporation (NNPC) and the government no longer control fuel prices, leaving refiners and marketers to set rates based on fluctuations in crude oil prices.

Dr. Gillis-Harry explained that this volatility directly impacts domestic petrol prices, making it difficult for retailers to maintain stable pricing. “It’s becoming a real issue; even retail outlet owners are struggling with these unpredictable price changes,” he remarked.

Dr. Joseph Obele, PETROAN’s National Public Relations Officer, reiterated that their members are not responsible for the price increases. He clarified, “Our selling price reflects our buying price. This hike is due to external factors beyond our control.”

To mitigate these challenges, PETROAN is advocating for the privatization of government-owned refineries and increased competition in the downstream sector. The association believes privatization will improve efficiency, reduce government spending, and stabilize the fuel market, ultimately benefiting Nigerian consumers through fairer pricing and more reliable petroleum product supplies.

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