The National President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has explained why fuel prices could rise above N1,000 per litre in the near future.
According to Gillis-Harry, the price of petrol in Nigeria may hit N1,000 per litre due to the ongoing Naira-for-crude deal discussions between Dangote Refinery and the Nigerian government through the Nigerian National Petroleum Corporation (NNPC). This comes after the recent increase in petrol prices, which rose to between N930 and N960 per litre from the previous price range of N860 and N880 at filling stations like MRS and those affiliated with Dangote Refinery.
He clarified that the recent price hike was a result of deregulation in the downstream sector, as well as broader economic and environmental factors. He said, “You can’t blame anyone. It’s the deregulation of the downstream sector and the economic and environmental factors. That’s the real issue.”
He further emphasized that claims the government or Dangote Refinery is to blame for the price increase are premature. “Has anybody confirmed that the government has stopped the Naira-for-crude deal?” he questioned, adding that there was no official decision yet on whether the deal would be halted.
Gillis-Harry also stressed that the PETROAN leadership had discussed the issue with the Minister of Petroleum, who explained that processes were ongoing to review actions taken in the last 180 days. He noted that the review pointed to the continuation of the Naira-for-crude deal, not its suspension.
He also addressed concerns about price fluctuations, stating that fuel prices are likely to remain unstable for a while. “As long as we’re experimenting with the market, prices will remain flexible,” he said. He added that once a consistent average price is established, stability could follow. However, until that happens, prices are likely to remain volatile.
Regarding the criticism of marketers, retailers, and depot owners storing products for profit, Gillis-Harry responded by saying that speculations and accusations should be based on evidence. He reiterated that economic and environmental factors were the real drivers of fuel pricing, and while some refiners may be planning to sell in dollars, this would hurt the naira and ultimately the economy.
For now, he concluded, the market will determine the final price, and PETROAN will keep reviewing the situation based on real-world data.