The national president of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has expressed concerns that fuel prices could exceed N1,000 per litre in the coming days.
This prediction follows ongoing discussions surrounding the Naira-for-crude deal between Dangote Refinery and the Nigerian government, particularly through the Nigerian National Petroleum Company Limited (NNPC).
As of recent weeks, petrol prices have already surged to between N930 and N960 per litre, a significant increase from the previous range of N860 and N880 at filling stations affiliated with Dangote Refinery.
According to Gillis-Harry, the increase is a result of various factors, including the deregulation of the downstream sector, as well as economic and environmental influences.
“You can’t blame anyone. It’s the deregulation of the downstream sector. It’s the economic and environmental factors. That’s what we really need,” Gillis-Harry told Daily Post.
The PETROAN president further emphasized that the Naira-for-crude deal remains crucial to the current situation, adding,
“Why are people blaming Dangote Refinery or the federal government? Has anybody confirmed that the government has stopped the Naira-for-crude deal?”
He pointed out that while there are ongoing processes to review the deal, it has not been halted, and thus, any claims to the contrary should be carefully examined.
“Until that decision is made and pronounced, we cannot say that that has been stopped.”
Gillis-Harry acknowledged the broader economic factors at play, explaining that as a businessman, he is free to make decisions based on market conditions.
He also emphasized that Dangote Refinery, being a private business operating in a free trade zone, has the right to determine how it prices its products, especially considering its status as Africa’s largest refinery.
Meanwhile, with concerns over the future price of petrol, Gillis-Harry noted that Nigerians could continue to face fluctuations in fuel prices.
“The price will not be stable for a while,” he said. “The stability of price will only come after a consistent average has been achieved.”
He further clarified that as the market adjusts, prices will remain volatile, and the potential for prices to exceed N1,000 per litre is highly likely.
“So, for now, this is where I will just stop and allow the juries of the market to determine how we are advancing the business,” he added.
In addition to the fluctuations, Gillis-Harry addressed accusations from other stakeholders who claim that fuel marketers, retailers, and depot owners are to blame for rising prices.
Some have alleged that these parties store products and sell them at higher rates to maximize profits.
In response, he maintained that the issue lies with the broader economic factors rather than profiteering by the retailers.
However, as discussions continue, it’s clear that these price hikes are tied to larger, systemic issues within the oil and gas industry.
“I have just gone back to the drawing board, and we will ask our members to review. Let us see what the realities will be,” said Gillis-Harry.
Until these variables are carefully assessed, the situation remains uncertain.
While the Naira-for-crude deal is at the center of the current discussions, the overall economic landscape, including the global demand for oil, foreign exchange rates, and the ongoing supply chain issues, will continue to play significant roles in determining the future of fuel prices in Nigeria.
Fuel prices are expected to remain volatile, but as Gillis-Harry concluded, the situation will require focused attention and adjustments in order to avoid further financial strain on Nigerian consumers.
In conclusion, the rising petrol prices in Nigeria are the result of complex economic and environmental factors, with the Naira-for-crude deal playing a key role in shaping future costs.
