PETROAN Asks Depot Owners, Others To Reduce Petrol Price As Oil Price Decline
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, urged refiners, depot owners and petroleum products importers as well as other stakeholders to adjust their prices downward in line with the fall in global crude oil prices, noting that such adjustment would enable Nigerians benefit from the new market conditions.
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, urged refiners, depot owners and petroleum products importers as well as other stakeholders to adjust their prices downward in line with the fall in global crude oil prices, noting that such adjustment would enable Nigerians benefit from the new market conditions.
According to the association, the drop in international crude prices presents a clear opportunity for operators in the downstream petroleum sector to reduce both ex-depot and retail pump prices, providing much-needed relief to households and businesses grappling with economic pressures.
National President of PETROAN, Billy Gillis-Harry, who spoke in a statement said the realities of the international oil market should be reflected in local petroleum pricing.
According to the association, the drop in international crude prices presents a clear opportunity for operators in the downstream petroleum sector to reduce both ex-depot and retail pump prices, providing much-needed relief to households and businesses grappling with economic pressures.
National President of PETROAN, Billy Gillis-Harry, who spoke in a statement said the realities of the international oil market should be reflected in local petroleum pricing.
The statement which was signed National Public Relations Officer, Joseph Obele read in part, “Brent crude has fallen to approximately $77 to $78 per barrel following the ceasefire agreement between the United States and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalise.
“Market analysts have noted that crude oil prices are currently under downward pressure, although geopolitical risks remain. Current projections suggest that Brent crude may trade within the range of $75 to $82 per barrel next week, while West Texas Intermediate, WTI, crude is expected to trade between $72 to $79 per barrel.
“For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges."
The association expressed concern that imported petroleum products are, in some cases, landing in Nigeria at costs lower than the prices offered by domestic refiners, pointing out that,
this development was surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available.
It then urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to continue issuing import licences to qualified marketers, even as increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.
Gillis-Harry, stressed that competition remained one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers, adding that a competitive market environment would encourage all market participants to review their prices
downward in line with prevailing market realities.
“For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges."
The association expressed concern that imported petroleum products are, in some cases, landing in Nigeria at costs lower than the prices offered by domestic refiners, pointing out that,
this development was surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available.
It then urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to continue issuing import licences to qualified marketers, even as increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.
Gillis-Harry, stressed that competition remained one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers, adding that a competitive market environment would encourage all market participants to review their prices
downward in line with prevailing market realities.
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