Why Nigerian Consumers Face Petrol Price Hikes – PETROAN Gives Breakdown

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has linked the recent rise in Premium Motor Spirit (PMS) prices to the escalating cost of crude oil in the global market.

PETROAN noted that Brent crude oil, a global benchmark, currently trades at $80.85 per barrel, while WTI oil and the OPEC basket are priced at $78.82 and $81.72 per barrel, respectively.

These prices hit a four-month high following the imposition of new U.S. sanctions on Russian oil.

In a statement issued by its president, Dr. Billy Gillis-Harry, PETROAN highlighted that under Section 205 of the Petroleum Industry Act (PIA), petrol prices are now regulated by market dynamics rather than government control.

This shift means that the Nigerian National Petroleum Corporation (NNPC) and the government no longer dictate fuel prices, leaving refiners and marketers to adjust their rates according to crude oil fluctuations.

Gillis-Harry explained that the volatility of crude oil prices directly impacts domestic petrol costs, creating challenges for retailers.

“It’s no longer funny; even retail outlets owners are affected by this up-and-down dwindling of prices. It affects our business,” he stated.

The National Public Relations Officer, Dr. Joseph Obele, who also signed the statement, stressed that PETROAN members have no control over the situation.

He explained, “Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor.”

To address the ongoing challenges, PETROAN has called for the privatization of government-owned refineries and the introduction of competition in the downstream sector.

The association believes privatization would enhance efficiency, reduce government spending, and stabilize the fuel market.

According to PETROAN, fostering competition in the downstream sector will ultimately benefit Nigerian consumers, ensuring fairer pricing and a more reliable supply of petroleum products.