PETROAN demands fuel price cuts as Brent falls below $80

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners and petroleum products importers to reduce fuel prices following the recent decline in global crude oil prices, arguing that consumers should benefit from lower crude costs.

In a statement issued on Wednesday, PETROAN said the fall in crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass savings on to Nigerians through lower ex-depot and retail pump prices.

Billy Gillis-Harry, the national president of PETROAN, said, “The recent drop in global crude oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the savings on lower crude costs to Nigerian consumers.”

He stressed that pricing across the petroleum value chain should reflect prevailing market conditions.

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

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The association noted that Brent crude prices have fallen to about $77-$78 per barrel following the ceasefire agreement between the United States and Iran and expectations that oil exports through the Strait of Hormuz will gradually return to normal levels.

Analysts expected Brent crude to trade between $75 and $82 per barrel next week, while West Texas Intermediate (WTI) crude is projected to range between $72 and $79 per barrel.

PETROAN attributed the decline in crude prices to the continued implementation of the US-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global oil demand. The association, however, acknowledged that geopolitical tensions and supply disruptions could still trigger fresh price increases.

The group also raised concerns over fuel pricing dynamics in the domestic market, noting that imported products appear to be cheaper than some locally refined fuels.

Gillis-Harry said, “The landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners.” He described the development as surprising and said it highlights the need for a more competitive downstream petroleum industry.

According to him, increased competition would ensure consumers have access to more affordable products while improving market efficiency.

To achieve this, PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.

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The association said greater participation by importers would help moderate prices, discourage monopolistic tendencies and guarantee steady supply across the country.

“Competition remains one of the most effective mechanisms for driving efficiency, reducing costs and protecting consumers,” Gillis-Harry said. “A competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.”

PETROAN also called on Bayo Ojulari, the Group Chief Executive Officer of NNPC Limited, to facilitate discussions with two Chinese firms that have reportedly expressed interest in operating the Port Harcourt and Warri refineries.

The association argued that private-sector operation of the facilities could significantly improve efficiency and help lower 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 restarting the Port Harcourt and Warri refineries under competent private management would enhance supply stability, promote healthy competition and make petroleum products more affordable for Nigerians.

PETROAN maintained that continued moderation in crude oil prices, alongside stable exchange rates and refining costs, should support lower petrol prices and provide much-needed relief to households and businesses struggling with economic pressures.

The association reaffirmed its commitment to promoting a transparent, competitive and consumer-friendly downstream petroleum sector capable of delivering fair pricing, energy security and sustainable economic growth.