The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has attributed the recent increase in Premium Motor Spirit (PMS) petrol to the rise in crude oil prices in the international market.
According to PETROAN, the benchmark for oil prices, Brent crude oil, stood at $80.85 per barrel while WTI oil and the OPEC basket were priced at $78.82 and $81.72 per barrel, respectively.
The prices rose to a four-month high following the introduction of new sanctions against Russian oil by the US.
PETROAN, in a statement issued on Saturday, 18 January, 2025 by it’s president Dr Billy Gillis Harry explained section 205 of the Petroleum Industry Act (PIA) states that petrol prices are determined by market forces, indicating that the government and NNPC no longer set petrol prices.
It said operators of refineries in Nigeria will respond accordingly to changes in crude oil prices.
PETROAN insisted the increase in crude oil prices would inevitably affect domestic costs.
“It’s no longer funny; even retail outlets owners are affected by this up-and-down dwindling of prices. It affects our business,” Harry stated.
The National Public Relations Officer, Dr. Joseph Obele, who signed the statement said Harry emphasised that PETROAN members cannot buy petrol at a higher price and sell it at a lower price.
“Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor,” it added.
To mitigate the impact of PMS pricing in Nigeria, PETROAN advocates for privatizing government-owned refineries and encouraging competition in the downstream sector.
Furthermore, PETROAN believes that the privatisation of refineries will not only reduce the financial burden on the government but also increase efficiency and productivity in the sector.
This, in turn, will lead to a more stable and competitive market, ultimately benefiting the Nigerian consumer.
