The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has issued a strong call for downstream operators, including the Dangote Refinery and petroleum importers, to slash petrol prices in response to the recent decline in global crude oil costs. Despite Brent crude falling to around $77 to $78 per barrel, Nigerians have yet to see significant relief at the pump, prompting the association to demand that savings be passed on to consumers.
PETROAN Urges Price Cuts to Reflect Market Realities
In a statement released by its National President, Billy Gillis-Harry, PETROAN stressed that fuel pricing should mirror developments in the international oil market. "The recent drop in global crude oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the savings on lower crude costs to Nigerian consumers," he said. The association argued that fairness and economic relief demand that both ex-depot and retail prices adjust downward whenever market realities change.
PETROAN noted that Brent crude has declined to $77–$78 per barrel following eased tensions between the United States and Iran and expectations of stable oil shipments through the Strait of Hormuz. Analysts project Brent crude to trade between $75 and $82 per barrel in the coming week, while West Texas Intermediate (WTI) is expected to hover between $72 and $79 per barrel. The decline is attributed to improved geopolitical stability, increased crude exports from the Middle East, and concerns over weaker global demand. However, the marketers warned that renewed tensions or supply disruptions could reverse the trend and trigger another spike in oil prices.
Imported Fuel Cheaper Than Local Supply? PETROAN Raises Concerns
One of PETROAN's biggest concerns is the growing price gap between imported and locally refined petroleum products. Gillis-Harry described it as surprising that imported fuel appears to be landing in Nigeria at lower costs than some products supplied by domestic refiners. "The landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners," he said. He argued that this development underscores the need for a more competitive downstream sector where multiple players can operate freely, ultimately benefiting consumers through lower prices.
Call for More Competition and Refinery Reforms
PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting import licences to qualified marketers to prevent monopolistic practices and encourage healthy competition. The association also called on NNPC Limited Group Chief Executive Officer, Bayo Ojulari, to engage two Chinese firms reportedly interested in operating the Port Harcourt and Warri refineries. According to PETROAN, allowing competent private operators to manage these refineries could improve efficiency, boost local refining capacity, and ultimately force fuel prices lower.
The group expressed optimism that if crude prices remain moderate, exchange rates stay stable, and refining costs decline, Nigerians could finally see more affordable petrol prices in the months ahead. Legit.ng earlier reported that energy experts predict the pump price of Premium Motor Spirit (PMS) could decline to around N1,000 per litre in the coming weeks, following a sharp drop in global crude oil prices and a N75 reduction in ex-depot petrol price announced by Dangote Refinery. The latest price cut has intensified competition in Nigeria's downstream oil sector and strengthened projections that the era of petrol selling above N1,200 per litre may gradually fade if current market conditions persist.
