PETROAN demands fuel price cuts as crude falls

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is calling for a reduction in ex-depot and retail pump prices of petroleum products. This appeal comes in response to the recent decrease in international crude oil prices, attributed to easing tensions between the United States and Iran and the anticipated normalization of exports through the Strait of Hormuz.

PETROAN's National President, Billy Gillis-Harry, stated that the current market realities, marked by falling global crude oil prices, provide a crucial opportunity for operators in the downstream petroleum sector to pass these benefits onto Nigerian consumers. He emphasized that both ex-depot and retail pump prices should reflect these lower crude costs to ensure fairness and provide economic relief to the public.

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The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers. Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.

According to the association, market analysts project that crude oil prices will remain under downward pressure, with Brent crude potentially trading between $75–$82 per barrel and West Texas Intermediate between $72 and $79 per barrel in the coming week. Factors contributing to this trend include the implementation of the US-Iran peace agreement, increased crude oil exports from the Middle East, and concerns about weaker global oil demand.

Gillis-Harry also expressed concern over domestic pricing discrepancies, noting that the landing cost of imported petroleum products sometimes appears lower than prices offered by domestic refiners. To address this and encourage a more competitive market, PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licenses to qualified marketers. Increased competition, they argue, will help moderate prices and ensure adequate supply for consumers.

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In some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners. This development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available.