Retail outlets have no role in fixing fuel price – PETROAN

• Petroleum Products Retail Outlets Owners Association of Nigeria has said its members have no hand in fixing the price of fuel
• It said citizens are aware of the ex-depot price of fuel being loaded from refineries
• The association noted declining patronage, which is threatening the sustainability of some petrol retail outlets

Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says its members have no role in fixing the price of fuel nationwide.

The National Public Relations Officer of PETROAN, Dr Joseph Obele, stated this during a radio interview in Abuja on Thursday, January 9.

Obele noted that the association will not be a party to any arrangement to shortchange Nigerians with regard to fuel prices.

He said that unlike before, Nigerians are now aware of the ex-depot price of fuel being loaded from the Nigeria National Petroleum Company Limited (NNPCL) and the Dangote Refinery.

He said this has led to a price war between both companies and also a crash in the range of fuel prices by different outlets across the country. 

Obele also assured of further fall in fuel price, especially with the coming on stream of the Port Harcourt and Warri refineries.

He said, “The issue of manipulation (by marketers) may not really be real.

“This is the first time in the history of Nigeria that our buying rate is made known to the general public. As of today, the general public is aware of how much we are buying from Dangote Refinery, and how much we are buying from the NNPCL.

“The retail outlets' owners have no role to play in the recent selling price of PMS so there is no issue of manipulation in that regard.”

Debates about fuel consumption put to rest

The association’s spokesperson also noted that the report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has given the actual figure of the quantity of fuel being consumed daily in the country, putting to rest the debates about actual consumption figures.

Obele said, “The NMDPRA has been able to ascertain our fuel consumption per day is between 40 and 45 million per day as against several speculations in the past.

“There had been speculation that we consumed between 70 million and 80 million of fuel daily. But right now, it is hovering around 40 million and 45 million per day.

“And Dangote Refinery is able to come up with 30 to 35 million litres per day and adding the BUA Refinery and Kaduna Refinery, Nigeria will have a surplus of this product.”

Outlets face declining patronage

On the availability of petrol products, Obele noted that the era of fuel scarcity is gone as Nigeria has enough fuel to meet citizens’ demands and still export fuel to neighbouring countries. 

He said the challenge is the affordability of the product, which has led to declining patronage and affecting the sustainability of outlets across the country.

Obele said, “The era of scarcity is gone but the challenge Nigerians are facing right now is affordability. It is extremely expensive and people don’t have the money and it is even affecting us the retail outlets' owners.

“A lot of us even are retrenching as we speak. Because a situation where before you sell 15,000 litres per day but now you manage to sell 3,000 litres per day.

“A jeep owner that usually buys full tank before is now a thing of the past. All we hear now is sell me three litres, five litres, and the rest.

“Sales are really dropping and members are suffocating and being strangulated. Things are not moving well and the retail outlets owners are feeling it seriously.”

Oil marketers predict price reduction as Warri refinery resumes operations

Meanwhile, TheRadar earlier reported that oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced that the prices of refined petroleum products are set to decrease further following the resumption of operations at the Warri Refining and Petrochemicals Company Limited (WRPC).

On Monday, December 30, industry stakeholders noted that competition in the downstream oil sector would intensify, as domestic refiners would now face pressure to lower their prices to attract buyers.