PETROAN urges fuel price cuts, calling on refiners and marketers to pass lower crude oil costs on to Nigerian consumers

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

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The appeal comes amid easing tensions between the United States and Iran, a development that has contributed to a gradual retreat in international oil prices after weeks of volatility in the global energy market.

PETROAN National President, Billy Gillis-Harry, made the call in a statement issued on Friday and signed by the association’s National Public Relations Officer, Dr Joseph Obele.

According to Gillis-Harry, the drop in crude oil prices presents an opportunity for operators across the downstream petroleum sector to pass the benefits of lower costs on to consumers.

“The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers.

Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public,” he said.

PETROAN noted that Brent crude prices have declined to approximately $77 to $78 per barrel following the ceasefire agreement between the United States and Iran and growing expectations that oil exports through the Strait of Hormuz will continue to normalise.

The association said market analysts expect crude oil prices to remain under downward pressure despite lingering geopolitical uncertainties.

According to PETROAN, current projections indicate that Brent crude could trade between $75 and $82 per barrel in the coming week, while West Texas Intermediate crude is expected to remain within the range of $72 to $79 per barrel.

The group identified several factors driving the decline, including the continued implementation of the US-Iran peace agreement, increased crude exports from the Middle East and concerns over weakening global demand for oil.

Gillis-Harry also raised concerns about pricing dynamics within Nigeria’s petroleum market, noting that imported fuel products appear in some cases to be landing at lower costs than products supplied by domestic refiners.

“In some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners.

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,” he said.

The PETROAN president urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting import licences to qualified marketers, arguing that increased competition would help moderate prices and prevent monopolistic tendencies.

“Increased competition among suppliers would help moderate prices, discourage monopolistic tendencies and ensure a steady supply of petroleum products across the country,” the statement said.

Gillis-Harry maintained that competition remains one of the most effective tools for improving efficiency, lowering operational costs and protecting consumers from excessive pricing.

The association also appealed to the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, to facilitate discussions with two Chinese companies interested in operating the Port Harcourt and Warri refineries.

According to PETROAN, reviving the facilities through private-sector management could significantly improve domestic refining capacity and further reduce fuel 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,” Gillis-Harry said.

He added that restoring full operations at the Port Harcourt and Warri refineries would strengthen supply stability, encourage healthy market competition and deliver more affordable petroleum products to consumers.

The association expressed optimism that sustained moderation in crude oil prices, coupled with stable exchange rates and manageable refining costs, would create conditions for further reductions in petrol prices across the country.

PETROAN reiterated its commitment to advocating policies that promote transparency, competition and consumer protection within the downstream petroleum sector.

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The latest call comes as Nigerians continue to closely monitor fuel pricing trends following recent reductions announced by major suppliers, including the Dangote Petroleum Refinery, amid expectations that lower global crude prices will eventually translate into broader relief at filling stations nationwide.