Oil Marketers Defend Petrol Price Hike, Urge Refinery Privatisation
Oil marketers have dismissed claims that filling stations are responsible for the recent surge in Premium Motor Spirit (PMS) prices, as fuel queues reappeared in several cities on Saturday.
Many fuel stations in Lagos, Ogun, Abuja, and Port Harcourt remained closed, with dealers explaining that they were monitoring price trends before making further adjustments.
A report by Sunday PUNCH revealed that petrol prices had risen to between N1,050 and N1,150 per litre, driven by higher supply costs from Dangote Petroleum Refinery and various depot owners.
Rising Crude Oil Prices Push Petrol Costs Higher
Dealers attributed the continued increase in petrol prices to the rising cost of crude oil, the primary component in fuel production.
On Friday, Dangote Refinery adjusted its PMS price from N899 to N955 per litre at its loading gantry. This prompted many retail stations to increase their pump prices, while others shut down temporarily to assess market conditions.
A major marketer, speaking anonymously due to lack of authorisation, explained:
“There is no fuel scarcity. Many filling stations are closed because marketers are monitoring price trends to avoid losses.”
The dealer stressed that rising crude oil costs were responsible for the higher petrol prices, not the actions of fuel marketers.
Long Queues as Some Stations Sell Below N1,000 per Litre
While some filling stations dispensed PMS above N1,000 per litre, others, like MRS, which had agreed to sell at N935 per litre based on a prior deal with Dangote Refinery, experienced long queues on Saturday.
At MRS stations in Alapere and Ojodu Berger, Lagos, motorists formed massive lines to buy at the lower price.
PETROAN Calls for Refinery Privatisation
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) defended filling stations, insisting that the increase in PMS prices is due to rising global crude oil costs.
PETROAN cited that Brent crude was trading at $80.85 per barrel, while WTI and OPEC basket prices stood at $78.82 and $81.72 per barrel, respectively.
The group attributed the price surge to new US sanctions on Russian oil, which had pushed global crude prices to a four-month high.
Market Forces Now Determine Petrol Prices
PETROAN President, Dr Billy Gillis-Harry, highlighted that under Section 205 of the Petroleum Industry Act (PIA), petrol prices are now set by market forces, with neither the government nor the Nigerian National Petroleum Company Limited (NNPCL) controlling pricing.
He explained that as crude oil prices rise, Nigerian refineries must adjust accordingly, leading to fluctuations in fuel costs.
“The continuous increase in crude oil prices affects the cost of petrol domestically. It’s a tough situation for both retailers and consumers,” he stated.
He further noted that PETROAN members cannot sell at a loss, saying:
“Our selling price reflects the buying cost. Marketers should not be blamed for the increase; it’s an external factor beyond our control.”
Proposed Solutions: Refinery Privatisation and Investment in CNG
To address the fuel price volatility, PETROAN advocated for the privatisation of government-owned refineries, arguing that this would:
✅ Reduce the financial burden on the government
✅ Enhance efficiency and productivity in the sector
✅ Create a competitive market that benefits consumers
PETROAN also urged the government to:
• Encourage investment in compressed natural gas (CNG) alternatives
• Provide financial support for retail outlet owners
• Develop infrastructure to reduce operational costs
PETROAN Commends Tinubu’s Economic Reforms
At a Petroleum Industry Stakeholders’ Forum in Abuja, PETROAN reaffirmed its commitment to supporting policies that enhance the Nigerian petroleum sector.
The association praised President Bola Tinubu’s decision to:
✅ Fully deregulate the petroleum industry
✅ Unify foreign exchange rates
✅ Implement reforms to unlock Nigeria’s oil and gas potential
In its position paper, PETROAN outlined key recommendations, including:
• Privatising refineries to boost efficiency
• Implementing stricter monitoring of downstream operators
• Investing in infrastructure to prevent fuel smuggling
• Prioritising local refineries’ access to crude oil
PETROAN pledged to continue working with stakeholders to shape the future of Nigeria’s oil and gas industry while ensuring fair pricing and sustainable growth.
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