The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, has said that the increase in the price of Premium Motor Spirit (PMS) by Dangote Petroleum Refinery will have a ripple effect on the economy.
Harry said this during an interview with Trust TV published on X on Wednesday.
His comments came two days after Dangote Refinery increased its gantry price by N100, bringing the ex-depot rate to N874 per litre from N774.
What PETROAN is saying
The PETROAN President said it is simple economics to understand that petrol retail outlet owners would incur additional costs following the hike.
- “That N100 will certainly affect every part of the economy. Those of us who have retail outlets that will buy from there will do so with a lot of logistics costs and a few other expenses.
- “So it’s very easy to understand that when you buy products at N874, you’re going to incur additional costs. That is, you will take the products from location one to location two, and those costs add up. Yet, the retail owners will still have to make some profit to be able to stay in business,” the PETROAN President said.
More insights
Harry addressed concerns over the alleged exploitation of consumers by some retail outlets following the hike in PMS price, saying PETROAN members are only faced with market realities.
- “So it’s not like there is a price hike that anybody is taking advantage of; it’s just the realities of the market that are facing us. Retail outlet owners will not take advantage of any Nigerian, especially PETROAN members.
- “PETROAN members are very careful to follow our simple rule, which is: if you have old stock, you sell it first, then you get new stock. You also make the best efforts to sell within the range approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
- “I don’t know who is taking advantage, but PETROAN members will not take advantage of Nigerians,” he insisted.
Backstory
Following Dangote Refinery’s announcement of the PMS price hike on Monday, several fuel marketers also followed suit.
The Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of petrol at its retail outlets in Abuja to N960 per litre, up from N875.
Checks conducted by Nairametrics at several NNPCL stations in the Federal Capital Territory on Tuesday confirmed the upward adjustment, with petrol selling at N960 per litre, compared to N875 per litre on Monday.
What you should know
The recent surge in global crude oil prices has been driven by escalating geopolitical tensions in the Middle East, particularly the United States and Israel’s attacks on Iran and the latter’s retaliation.
- As part of the ripple effects, Nigerian crude oil prices surpassed the $80 per barrel mark as uncertainties continue to grow in the global market due to the tensions.
- The latest prices exceeded the Federal Government’s 2026 budget benchmark of $64.85 per barrel.
- Higher prices boost Nigerian government revenue, even though West Africa’s largest economy’s production has been below its OPEC quota.
Crude oil accounts for most of Nigeria’s foreign exchange earnings and a large portion of government revenue, despite making up only 3–5 percent of the country’s GDP.
