PETROAN Asks Oil Market Players to Cut Fuel Prices as Global Crude Falls – THIS UPDATE

By Ayo Kehinde

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, warehouse owners and importers of petroleum products to reduce ex-depot and retail pump prices in line with the recent decline in global crude oil prices

In a statement signed by its National Public Relations Manager, Joseph Obele, PETROAN National President, Billy Gillis-Harry, said the downward trend in international crude oil prices should be reflected throughout the downstream value chain, stressing that market realities require fairness and responsiveness from industry players.

“The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream oil sector to pass on savings on 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 to the public,” he said.

According to him, Brent crude oil fell to around $77-78 per barrel following the easing of geopolitical tensions after a ceasefire agreement involving the United States and Iran, as well as expectations of improved flow of crude oil through the Strait of Hormuz.

He noted that market analysts expect Brent crude to trade between $75 and $82 a barrel in the coming week, while West Texas Intermediate (WTI) is expected to remain within a range of $72 to $79 a barrel.

Gillis-Harry attributed the decline to the continued implementation of the U.S.-Iran peace framework, increased supply from Middle Eastern producers and concerns about weakening global demand.

While acknowledging the possibility of price volatility resulting from supply disruptions, disruption of peace negotiations, or unexpected production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the PETROAN president said the current outlook remains broadly stable or bearish.

Gillis-Harry also expressed concern that, in some cases, the landed cost of imported petroleum products appears lower than the prices offered by domestic refiners, describing the situation as an indication of pricing inefficiencies in the downstream sector.

He highlighted the need for a more competitive market structure that ensures consumers have access to the most affordable products available.

To intensify competition, Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licenses to qualified marketers, arguing that greater participation would help stabilize prices and curb monopolistic tendencies.

“Competition remains one of the most effective mechanisms for promoting efficiency, reducing costs and protecting consumers,” he said.

Gillis-Harry argued that a more open market environment would force operators to adjust prices downwards in line with global trends and national realities.

He also invited the Group Managing Director of NNPC Limited, Engr. Bayo Ojulari, to facilitate dialogue with two Chinese companies interested in operating the Port Harcourt and Warri refineries.

According to him, the revival of refineries with the participation of the private sector would significantly increase local refining capacity and help bring down the prices of petroleum products.

“If these refineries are successfully revived and operated as private sector-led facilities, petroleum product prices are expected to decline further due to improved efficiency and increased domestic refining capacity,” he said.

He added that operational refineries in Port Harcourt and Warri would improve supply stability, promote competition and make petroleum products more affordable for Nigerians.

President PETROAN further noted that sustained moderation in crude oil prices, combined with stable exchange rates and improved refining efficiency, could provide much-needed relief to consumers and businesses struggling with high energy costs.

Reaffirming the association’s position, Gillis-Harry said PETROAN remains committed to supporting “a transparent, competitive and consumer-friendly downstream oil sector that delivers fair prices, energy security and sustainable economic growth for all Nigerians.”