The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has justified its earlier request that the Federal Government authorize a N100 billion intervention fund to help stabilize the petroleum products market and make them more accessible to Nigerians.
Dr. Billy Gillis-Harry, President of the association, spoke on Arise TV’s This Morning Show on Monday about the urgent need for financial intervention to offset the high cost of business operations in the sector.
“The request for N100 billion intervention was requested because it is going to cushion the cost of money in our business. And that will make a long way to make petroleum products available and affordable to Nigerians.”
He further elaborated on the source of the proposed funds, emphasizing that the intervention could be integrated into the federal budget.
“Every year, there’s a budget, and this N100 billion is just a small fraction of it. It’s going to significantly ease our operations, especially considering that the current cost of money is between 36 and 40 percent,” he stated.
The PETROAN president stressed that the high cost of financing has placed immense pressure on petroleum product retailers, which directly impacts the prices that consumers face at the pump. The intervention fund, he argued, would provide the necessary financial relief to ensure a steady supply of petroleum products at reduced prices.
Dr. Gillis-Harry also appealed to the federal government to prioritize the request, emphasizing its potential benefits for the broader economy. “We hope the federal government will take this very seriously. It’s going to help ensure that Nigerians can access petroleum products at a much more affordable price,” he urged.
Back story
Over the weekend, the group, in a statement signed by its president urged President Bola Tinubu to approve N100 billion grant to marketers to help with job losses caused by the removal of petrol subsidy.
The statement read, in part, “PETROAN request for a grant of N100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.”
“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”
- PETROAN said the recommendations will consolidate gains in the downstream sector.
- According to the association, despite the challenges experienced last year, the sector is poised for continued growth and development.
“2024 was a significant year for Nigeria’s oil and gas downstream sector, marked by deregulation, infrastructure investments, and growth in the LPG market,” PETROAN said.
