PETROAN Urges Refiners, Depot Owners To Reduce Fuel Price

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners and petroleum products importers to reduce ex-depot and retail pump prices of petroleum products in line with the recent decline in global crude oil prices.

The association’s National President, Billy Gillis-Harry, made the call in a statement issued on Thursday, June 19, by PETROAN’s National Public Relations Officer, Dr. Joseph Obele.

According to Gillis-Harry, the downward movement in international crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass on the benefits of lower crude costs to Nigerian consumers.

He stressed that prevailing market conditions should be reflected in both ex-depot and retail pump prices to ensure fairness and provide economic relief to Nigerians.

“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.

He added that “market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.”

The PETROAN president noted that Brent crude oil prices have fallen to about $77–$78 per barrel following the ceasefire agreement between the United States and Iran and expectations of a gradual normalization of oil exports through the Strait of Hormuz.

He said market analysts currently project Brent crude to trade between $75 and $82 per barrel next week, while West Texas Intermediate (WTI) crude is expected to remain within the $72 to $79 per barrel range.

Gillis-Harry attributed the decline in crude oil prices to the continued implementation of the U.S.-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global oil demand.

While acknowledging that fresh supply disruptions, a breakdown in peace negotiations or unexpected production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and its allies could trigger price increases, he maintained that the current outlook for the oil market remains relatively stable to bearish.

The PETROAN president also expressed concern that the landing cost of imported petroleum products appears, in some cases, to be lower than the prices offered by domestic refiners.

“According to him, this development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available,” the statement said.

To address the situation, Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.

He explained that “increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.”

The PETROAN president maintained that competition remains critical to achieving efficiency and consumer protection in the sector.

“Competition remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers,” he said.

He added that a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.

PETROAN further called on the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, to facilitate discussions with two Chinese firms that have expressed interest in operating the Port Harcourt and Warri refineries.

Gillis-Harry said the successful revival and operation of the facilities under private-sector management could further drive down petroleum product prices.

“If these refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices are expected to decline further due to improved efficiency and increased domestic refining capacity,” he said.

He noted that the resumption of operations at the Port Harcourt and Warri refineries under competent private management would enhance supply stability, promote healthy competition and ultimately make petroleum products more affordable for Nigerians.

The PETROAN president added that sustained moderation in crude oil prices, combined with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses grappling with economic challenges.

He reiterated the association’s commitment to advocating for “a transparent, competitive, and consumer-friendly downstream petroleum sector that delivers fair pricing, energy security, and sustainable economic growth for all Nigerians.”