PETROAN Announces Imminent Price Reduction
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has announced that Nigerians can anticipate a decrease in petrol pump prices within the coming week. This follows the recent decision by both the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery to lower the ex-depot price of petrol to ₦899 per litre in Lagos.
Delayed Impact on Pump Prices
Despite the announced reduction at the depot level, the new prices have yet to be reflected at many filling stations across the country. PETROAN’s President, Billy Gilly-Harry, speaking on Channels Television’s ‘Sunrise Daily’, expressed optimism that the new pricing would soon be evident at retail outlets. “From today, as our members begin to load fuel at the reduced price from NNPC and Dangote, we expect to see this change reflected in the market,” Gilly-Harry stated.
Acknowledgment of Early Adopters
He also praised some members of PETROAN, particularly in Abuja, for preemptively lowering their prices below ₦1,000 even before the official announcement. However, he emphasized the importance of maintaining a business model that allows for sustainable operations. “Our goal is to serve Nigerians effectively, but we must also ensure our businesses remain viable by making a marginal profit to cover costs,” he explained.
Why Immediate Changes Are Not Seen
Gilly-Harry pointed out that the delay in price reflection at retail levels is due to existing stocks purchased at higher rates. “Remember, some of our members bought petrol at ₦970, plus additional costs for transportation and logistics, which increases the final retail price,” he noted. This necessitates a gradual adjustment to avoid selling at a loss, aligning with the provisions of the Petroleum Industry Act (PIA) for minimal profit margins.
Appreciation for Price Reductions
The PETROAN leader extended his gratitude to both NNPC and Dangote Refinery for their initiative in reducing the price of this essential commodity, which is expected to alleviate some financial burden on consumers, particularly during the holiday season.
