PETROAN President Warns Fuel Price May Exceed N1,000/Litre
Fuel Prices May Exceed N1,000/Litre Due to Market Dynamics – PETROAN President
The National President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has warned that petrol prices in Nigeria could soon rise above N1,000 per litre.
He attributed this potential increase to ongoing negotiations between Dangote Refinery and the Nigerian government regarding the Naira-for-crude oil deal.
Speaking to Daily Post, Gillis-Harry explained that the recent jump in petrol prices—ranging from N860 to as high as N960 per litre at MRS and other Dangote Refinery-affiliated filling stations—was driven by economic and environmental factors, not government interference.
Key Factors Behind Rising Fuel Costs
- Market Deregulation
He emphasized that Nigeria’s downstream oil sector operates under a deregulated framework, meaning supply and demand fluctuations determine fuel prices. “You can’t blame anyone. This is the reality of a deregulated market,” he said. - Ongoing Naira-for-Crude Deal
Addressing concerns that the government’s crude-for-naira arrangement with Dangote Refinery had ended, he noted that no official pronouncement had been made to discontinue the deal. He cautioned against speculation and misinformation, urging stakeholders to rely on verifiable data. - Economic and Environmental Factors
According to Gillis-Harry, price instability will persist until an average market equilibrium is achieved. He stated, “As long as we are still experimenting with pricing models, fluctuations will continue. Stability will come only when the market finds a consistent average.” - Private Refinery Decisions
He highlighted that Dangote Refinery operates as a private entity within a free trade zone, giving it the autonomy to set fuel prices based on market conditions. He acknowledged that economic shifts, currency value, and global oil prices influence pricing dynamics. - Potential Dollarization of the Economy
Gillis-Harry warned that if other refineries adopt dollar-based pricing, it could lead to further depreciation of the Naira, pushing Nigeria towards a dollarized economy.
Price Speculation and Hoarding Accusations
When asked whether fuel marketers and depot owners were hoarding products to manipulate prices, he dismissed the claims. He argued that price hikes were purely a reflection of economic trends rather than artificial scarcity created by market players.
He concluded by saying, “The market itself will determine whether fuel will hit N1,000 per litre. We are already at N950 in some areas, so further increases are inevitable unless economic conditions improve.”
PETROAN President Warns Fuel Price May Exceed N1,000/Litre
