•Fuel queues
Oil marketers have declared that filling stations should not be blamed for the hike in the pump prices of Premium Motor Spirit, popularly called petrol, as queues for the commodity surfaced in various locations yesterday.
Many filling stations in Lagos, Ogun, Abuja, and Port Harcourt, among others, were closed yesterday, as dealers explained that they were monitoring developments to make adequate price adjustments, reports Sunday PUNCH.
Petrol prices had risen to between N1,050 and N1,150/litre depending on the area of purchase, following the hike in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners.
Dealers confirmed that PMS prices would continue to rise since the major component in fuel production, crude oil, has been on the upward swing lately.
On Friday, there was an increase in the price of petrol produced by the Dangote refinery. The $20bn plant raised its PMS from N899/litre to N955/litre at its loading gantry.
This led to a hike in the pump prices of the commodity by retail stations that dispensed the product yesterday, while many others shut their outlets to monitor developments.
“There is no scarcity of product, rather filling stations are closed because dealers are observing developments and are careful not to run at a loss,” a major marketer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.
The dealer insisted that marketers should not be blamed for the hike in petrol prices, stressing that the situation was due to the rise in the cost of crude oil.
Meanwhile, as many stations stayed closed yesterday, the few that dispensed petrol sold it above N1,000/litre in Lagos, while those that dispensed below N1,000/litre, such as MRS, had long queues.
The MRS filling stations in the Alakpere and Ojodu Berger areas of Lagos that dispensed petrol at the N935/litre price earlier agreed between the oil marketing firm and the Dangote refinery had massive queues of motorists yesterday.
Commenting on the issue, the Petroleum Products Retail Outlets Owners Association of Nigeria said filling stations should not be blamed for the changes in the prices of PMS.
PETROAN attributed the increase in PMS prices to the rise in the cost of crude oil in the international market.
It said the benchmark for oil prices, Brent crude, stood at $80.85/barrel, while WTI oil and the OPEC basket were priced at $78.82 and $81.72/barrel, respectively.
Prices were said to have risen to a four-month high following the introduction of new US sanctions against Russian oil.
The National President of PETROAN, Dr Billy Gillis-Harry, quoting Section 205 of the Petroleum Industry Act, stated that petrol prices are determined by market forces, indicating that the government and the Nigerian National Petroleum Company Limited no longer set petrol prices.
As a result, he noted that refinery operators in Nigeria will respond accordingly to changes in crude oil prices.
Gillis-Harry noted that increasing crude oil prices would inevitably affect domestic costs.
“It’s no longer funny; even retail outlet owners are affected by this up-and-down movement of prices. It affects our business,” he noted.
Gillis-Harry emphasised that PETROAN members cannot buy petrol at a higher price and sell it at a lower price.
“Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor,” he added.
To mitigate the impact of PMS pricing in Nigeria, PETROAN advocated privatising government-owned refineries and encouraging competition in the downstream sector.
He maintained that the privatisation of refineries will not only reduce the financial burden on the government but also increase efficiency and productivity in the sector, saying, this will lead to a more stable and competitive market, ultimately benefiting the Nigerian consumer.”
“In addition, PETROAN is calling on the government to provide a more conducive business environment for retail outlet owners, including access to affordable financing and infrastructure development.
“By doing so, the government can help reduce the costs associated with running a retail outlet, thereby making petrol more affordable for Nigerians,” Gillis-Harry said.
In a statement by PETROAN spokesperson, Joseph Obele yesterday, the association emphasised the need for strategic collaboration and investment in Nigeria’s petroleum sector at the inaugural meeting of the Petroleum Industry Stakeholders’ Forum, which brought together key stakeholders from the government, regulatory bodies, and the private sector in Abuja.
PETROAN’s National President, Gillis-Harry, reiterated the association’s commitment to supporting initiatives that promote the growth and sustainability of Nigeria’s petroleum sector.
PETROAN pledged to add value to the stakeholders’ forum, contributing to shaping the industry’s future and addressing its challenges.
He commended President Bola Tinubu’s decision to fully deregulate the industry, unify foreign exchange rates, and implement policies “that unlock the full potential of our petroleum sector.”
PETROAN, in a position paper submitted to pressmen at the forum, said the Nigeria oil and gas sector recorded significant milestones that shaped Nigeria’s oil and gas downstream sector in 2024.
“As a critical stakeholder, PETROAN, comprising membership with over 6,900 retail outlets across Nigeria, played a crucial role in ensuring the smooth distribution of value to Nigeria. Therefore, it is correct to say that PETROAN was instrumental in the oil and gas sector’s achievements.
“However, to reinforce previous achievements, PETROAN recommends the following: privatisation of Nigerian-owned refineries; establishment of a robust monitoring and evaluation framework to track the performance of downstream operators; investing in infrastructure development, addressing cross-border smuggling; and prioritising local refineries’ access to crude oil.”
