The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said Nigerians deserve palliatives from increased revenue, given the rising crude oil price.
PETROAN President, Dr. Billy Gillis-Harry, made this known in an interview with Nairametrics on Saturday.
His comments come amid the ongoing tensions in the Middle East, which have led to rising crude oil prices.
Brent crude has risen as high as $100 per barrel in recent days, surpassing Nigeria’s 2026 budget benchmark of $64.85 per barrel. The government is expected to generate more revenue given the development.
What PETROAN is saying
While responding to questions from Nairametrics on whether the Federal Government can regulate the unstable price of fuel, which is a ripple effect of the global oil crisis, Harry kicked against this but suggested other ways the government can intervene.
- “It’s the market forces that are determining the prices. As to whether the price should go back to regulation by the government or not, we certainly don’t support that.
- “We would rather ask the government to do something to ameliorate the pains and the sufferings of Nigerians.
- “For instance, we have gotten so much income supposedly from the hike in the price of crude oil, so we should be able to look at how we can give some sort of palliatives for transportation,” he said.
PETROAN backs deregulation
When asked for his position on the recent comments made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the FG will not regulate the oil market, Harry said it is correct that fuel prices are determined by market forces.
- “The Honourable Minister is right. We have already passed the law that has deregulated this segment of the economy.
- “So the only way it can be reversed again is by another law or an executive order that must still go through the National Assembly, which will be a waste of time.
- “The purpose of the deregulation was to ensure that we do not waste taxpayers’ money that we didn’t have… that we were borrowing trillions of naira to pay subsidies, which did not make economic sense to people like us.
He said the President has responded to the situation by ordering 100,000 CNG vehicle conversion kits to be deployed.
- “But this should not be done as a one-off because, at least in Nigeria, we have over 17 million vehicles, out of which over 40 per cent are used for commercial transportation.
- “So those involved in commercial transportation should be seen as the first tier of beneficiaries of the conversion kits,” he told Nairametrics.
More CNG stations needed
PETROAN said more CNG and electric vehicle charging stations are needed in the country.
- “Also, we should look for ways to support the industry, especially PETROAN, which owns retail outlets. We are willing to provide our retail outlets as daughter stations for CNG, and electric motor chargers can easily be installed. In other climes, there is some sort of fund that helps to deepen this type of experiment, and PETROAN is willing to provide our retail outlets.
- “We should have at least 6,000 daughter stations in the country and at least 500 mother stations. This will help instead of thinking of price regulation by the government.”
What you should know
The Federal Government has reaffirmed its commitment to market-based petrol pricing, saying it will not introduce price controls despite rising geopolitical tensions in the Middle East that have heightened volatility in global oil markets.
The Minister of Finance, Wale Edun, said this during an interview aired on Wednesday on Politics Today on Channels Television.
- According to the minister, the administration will explore alternative ways to ease the cost-of-living pressure on Nigerians rather than reversing key market reforms.
- He explained that the Tinubu administration’s economic strategy is anchored on market-driven pricing for petroleum products and foreign exchange, reforms introduced to eliminate distortions that had persisted for years.
Petrol price has surged to over N1,200 per litre in many parts of the country as a key supplier, Dangote Refinery, has put the depot price at N1,175.
This has pushed up the cost of transportation for many Nigerians with an attendant increase in the prices of goods and services.
