LAGOS – Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), says its members shouldn’t be blamed for the current hike in the pump price of petrol in Nigeria.
The development, it said, was due to external factor.
The National President of PETROAN, Dr. Billy Gillis Harry, in a statement, maintained that the increase in crude oil prices would inevitably affect domestic costs.
“It’s no longer funny; even retail outlets owners are affected by this up-and-down dwindling of prices. It affects our business
“Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor”, the association’s National Public Relations Officer, Dr. Joseph Obele, quoted the President in a statement.
He said that PETROAN members cannot buy petrol at a higher price and sell it at a lower price.
He explained that the benchmark for oil prices, Brent crude oil, stood at $80.85 per barrel, while WTI oil and the OPEC basket were priced at $78.82 and $81.72 per barrel, respectively. The prices rose to a 4-month high following the introduction of new sanctions against Russian oil by the US.
According to him, Section 205 of the Petroleum Industry Act (PIA) states that petrol prices are determined by market forces, indicating that the government and NNPC no longer set petrol prices. As a result, operators of refineries in Nigeria will respond accordingly to changes in crude oil prices.
He advocated the need to privatise government-owned refineries and encouraging competition in the downstream sector.
According to him, privatisation of refineries will not only reduce the financial burden on the government but also increase efficiency and productivity in the sector.
He explained that this will lead to a more stable and competitive market, ultimately benefiting the Nigerian consumer.
He further emphasised the need for the government to provide a more conducive business environment for retail outlet owners, including access to affordable financing and infrastructure development.
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