The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, has warned that the recent increase in the gantry price of Premium Motor Spirit (PMS) by Dangote Petroleum Refinery will raise operational costs for fuel retailers and trigger wider economic effects.
Gillis-Harry said the N100 increase in the refinery’s ex-depot price would inevitably translate into higher logistics and distribution costs across the downstream petroleum sector.
Speaking during an interview on Trust TV on Wednesday, the PETROAN president explained that the price adjustment would affect petroleum retail outlet owners who must factor in transportation, handling, and other operational expenses before selling to consumers.
Advertisement
His remarks came two days after Dangote Petroleum Refinery increased its gantry price for PMS to N874 per litre from N774, representing a N100 rise at the depot level.
According to Gillis-Harry, the increase reflects a basic economic reality in the petroleum supply chain, where every additional cost incurred at the point of purchase ultimately influences the final pump price.
He said retailers purchasing petrol at the new ex-depot rate would inevitably face higher logistics costs as products are transported from depots to retail stations across the country.
“That N100 will certainly affect every part of the economy,” he said. “Retail outlet operators that buy products at N874 per litre will also incur logistics costs and other operational expenses to move the products from one location to another.”
He noted that beyond transportation costs, retailers must still maintain margins that allow them to remain financially viable.
“When you buy products at that rate, there are additional costs involved in transporting them and keeping the business running. Retail outlet owners must also make some profit in order to stay in business,” he added.
The PETROAN president also addressed concerns that some fuel marketers could exploit the price increase to impose excessive pump prices on consumers.
He dismissed such allegations, insisting that PETROAN members operate within established regulatory frameworks and do not deliberately exploit Nigerians.
According to him, members of the association follow the long-standing practice of selling existing inventory before adjusting prices to reflect newly purchased stock.
“Our rule is simple,” Gillis-Harry said. “If you have old stock, you sell it first before bringing in new stock.”
He further emphasised that retail operators strive to sell petroleum products within the pricing guidance set by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“PETROAN members are very careful to sell within the range approved by the regulator. We are not taking advantage of Nigerians; we are simply responding to market realities,” he said.
Industry analysts note that changes in refinery depot prices often cascade through the petroleum supply chain, influencing transportation costs, retail pump prices, and ultimately the broader cost of goods and services in the economy.
The Dangote Petroleum Refinery, Africa’s largest refinery project, has increasingly become a dominant supplier in Nigeria’s downstream market since commencing fuel supply, making its pricing decisions a key determinant of petrol market dynamics in the country.