PETROAN Calls For Lower Petrol Prices Amid Falling Oil Market

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot operators and petroleum products importers to immediately reduce their ex-depot and retail prices in response to the recent decline in global crude oil prices, arguing that Nigerian consumers should benefit from easing conditions in the international oil market.

The association said the sustained moderation in crude prices presents an opportunity for players in the downstream petroleum sector to lower the cost of petrol and other petroleum products, thereby providing relief to households and businesses struggling with rising operating costs and inflationary pressures.

Speaking through a statement issued by the National Public Relations Officer, Joseph Obele, PETROAN National President, Billy Gillis-Harry, said developments in the global oil market should be reflected in domestic fuel pricing.

According to the association, Brent crude prices have declined to about $77-$78 per barrel following the ceasefire agreement between the United States and Iran, as well as expectations that crude oil exports through the Strait of Hormuz will gradually return to normal levels.

“The realities of the international oil market should be reflected in local petroleum pricing. The recent decline in crude oil prices creates room for a downward adjustment in fuel prices across the supply chain,” Gillis-Harry said.

The association noted that market analysts expect crude oil prices to remain under pressure in the near term despite lingering geopolitical uncertainties. Current forecasts indicate that Brent crude could trade between $75 and $82 per barrel next week, while West Texas Intermediate (WTI) crude is projected to fluctuate within the range of $72 and $79 per barrel.

PETROAN argued that a reduction in crude oil prices should ordinarily translate into lower costs for refined petroleum products, especially in a deregulated market environment where prices are expected to respond to prevailing market fundamentals.

The association also raised concerns over pricing disparities in the domestic market, revealing that imported petroleum products are in some instances landing in Nigeria at lower costs than products supplied by local refiners.

According to Gillis-Harry, the development raises important questions about competitiveness within the country’s refining sector and highlights the need for a more efficient and transparent downstream market capable of delivering affordable products to consumers.

“It is surprising that imported products can, in some cases, arrive at lower costs than locally refined products. This underscores the importance of maintaining a competitive market structure that allows consumers to access the most affordable fuel available,” he said.

To strengthen competition and ensure adequate supply, PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting import licences to qualified marketers.

The association maintained that sustained access to import licences would encourage healthy competition among suppliers, curb monopolistic tendencies and help stabilise product availability across the country.

Industry competition, PETROAN said, remains one of the most effective tools for driving operational efficiency, reducing costs and protecting consumers from excessive pricing.

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

According to PETROAN, attracting credible private-sector operators to manage the facilities could significantly improve refining efficiency, boost domestic production capacity and contribute to lower petroleum product prices over time.

Gillis-Harry said the successful rehabilitation and commercial operation of the refineries under competent private management would enhance supply security, deepen market competition and reduce the country’s dependence on imported petroleum products.

He added that increased domestic refining capacity, combined with favourable crude oil prices, stable exchange rates and lower production costs, would create the conditions necessary for sustained reductions in fuel prices.

“For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges,” the association stated.

The call comes amid growing public expectations that fluctuations in international crude oil prices should be more quickly reflected in domestic fuel prices following the deregulation of the downstream petroleum sector.