Nigerian Fuel Retailers Push for Lower Prices and More Import Licences 

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot owners, and importers to immediately reduce the ex-depot and retail pump prices of petroleum products across Nigeria. 

Citing a significant decline in global crude oil prices, PETROAN argues that the cost savings must be passed on to Nigerian consumers for much-needed economic relief.

Billy Gillis-Harry, national president of PETROAN, said the current downturn in international crude oil markets presents a crucial opportunity for downstream stakeholders to ensure fair pricing. “Market realities must be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public,” Gillis-Harry stated in a statement on Friday.

Brent crude, a global benchmark, has recently fallen to approximately $77–$78 per barrel. This decline is largely attributed to a ceasefire agreement between the United States and Iran, which is expected to normalize oil exports through the Strait of Hormuz. Additionally, increased crude oil exports from the Middle East and concerns over weaker global oil demand are contributing to the downward pressure. Current projections suggest Brent crude could trade between $75–$82 per barrel next week, with West Texas Intermediate following suit at $72–$79 per barrel.

PETROAN expressed concern that, in some instances, the landing cost of imported petroleum products appears to be even lower than prices offered by domestic refiners, highlighting the urgent need for a competitive market. To foster this competition, the association urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licenses to qualified marketers, thereby moderating prices and discouraging monopolistic tendencies.

The group appealed to the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, to facilitate discussions with two Chinese firms interested in operating the Port Harcourt and Warri Refineries. According to Gillis-Harry, the successful revival and private-sector operation of these refineries would significantly boost domestic refining capacity, improve efficiency, and lead to further reductions in petroleum product prices, enhancing supply stability and promoting healthy competition.

“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,” it said. The association reiterated its commitment to advocating for a transparent, competitive, and consumer-friendly downstream petroleum sector that ensures fair pricing, energy security, and sustainable economic growth for all Nigerians.

While acknowledging that potential disruptions like breakdowns in peace negotiations or unexpected OPEC production cuts could trigger price increases, PETROAN maintains that the prevailing market outlook remains “relatively stable to bearish.”