The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has attributed the recent hike in Premium Motor Spirit (PMS) prices to rising crude oil costs in the global market.
PETROAN noted that Brent crude, a global benchmark, is currently priced at $80.85 per barrel, with WTI oil at $78.82 and the OPEC basket at $81.72 per barrel.
These figures represent a four-month high, driven by new U.S. sanctions on Russian oil.
In a statement, PETROAN President Dr. Billy Gillis-Harry emphasized that under Section 205 of the Petroleum Industry Act (PIA), petrol prices are now determined by market forces rather than government regulation.
This means that fuel prices are no longer fixed by the Nigerian National Petroleum Corporation (NNPC) or the government but instead fluctuate based on crude oil prices.
“The volatility of crude oil prices has made domestic petrol costs unstable, posing significant challenges for retailers,” Gillis-Harry stated. He added, “This constant fluctuation affects not only consumers but also retail outlet owners.”
Dr. Joseph Obele, PETROAN’s National Public Relations Officer, echoed this sentiment, stressing that their members have no control over the situation. “Our selling price reflects our buying price. The current increase isn’t due to our members but is influenced by external factors,” Obele explained.
To mitigate these challenges, PETROAN has called for the privatization of government-owned refineries and increased competition in the downstream sector. According to the association, privatization would enhance operational efficiency, reduce government expenditure, and help stabilize fuel prices.
PETROAN believes that fostering competition in the downstream sector would benefit Nigerian consumers by ensuring fairer pricing and a more reliable supply of petroleum products.