By Adewale Sanyaolu
Hopes of cheaper petroleum products brightened yesterday as fuel retailers under the auspices of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are currently in talks with refineries, including Dangote refinery and the Nigerian National Petroleum Company (NNPC Ltd) to achieve a lower price regime for Nigerians.
PETROAN President, Mr. Billy Gilly-Harry, disclosed this in a telephone interview with Daily Sun on Sunday.
According to him, some of the refineries that PETROAN is negotiating with include; Dangote refinery, Edo refinery and Aradel refinery.
Gilly-Harry assured that at the end of the talks, Nigerians will surely have access to cheaper fuel at a rate that would be affordable.
He said PETROAN is a big deal in the downstream petroleum sector because they engage the industry with accurate and evidence-based data as provided by its members.
He said these data are incontrovertible and have helped every player within the downstream value chain in planning and product allocation.
“We as PETROAN are leveraging our numbers to ensure that we negotiate better prices for Nigerians and that is why you have seen a gradual drop in the price of petrol,’’he said.
He assured that PETROAN will continue discussions along that line, especially with NNPC Ltd now that the Port Harcourt refinery is running.
The PETROAN boss said when petroleum products are available through different sources, including private refineries, prices will begin to drop.
“That is why we are happy with what the NNPC is doing at the moment, especially with the coming on stream of the Port Harcourt refinery. Next will be the Warri and Kaduna refineries. By the time we have all these refineries running and other ones producing, the market will be flooded and we can begin export.
He said this strategy will now create a willing buyer, willing buyer market structure which would subsequently force down the prices of petroleum products.
When asked about the potential market price of petrol following discussions with NNPC, Dangote, and other refineries, he emphasized that it would be premature to speculate. He assured that once the appropriate time arrives, the new prices will be made public.
Meanwhile, the latest data from the Major Oil Marketers Association of Nigeria (MEMAN) reveals a slight decline in the estimated landing cost of petrol in the country. As of last Thursday, the cost dropped from N936.75 per litre to N900.28 per litre, reflecting a 3.62 percent decrease. This reduction in landing cost, which encompasses the expenses of importing and distributing the product, suggests some relief amidst global market fluctuations and supply chain dynamics. Despite this drop, the retail price of petrol in Nigeria remains at N1,060 per litre.
In Lagos, NNPC Ltd retail outlets have adjusted their pump prices downwards from N1,025 per litre to N1,015 per litre while other major marketers are currently selling at N1,025 from N1.050 to reflect this new change.
Crude oil prices and foreign exchange rates are the major factors that determine the cost of refined petroleum products, including petrol, diesel, aviation fuel, kerosene and others.