Oil marketers have distanced themselves from the recent increase in Premium Motor Spirit (PMS), commonly known as petrol, following a price hike by Dangote Petroleum Refinery and other depot owners.
NewsNGR reports that marketers have pointed to rising crude oil prices on the international market as the primary cause of the price surge.
Long queues returned to filling stations in major cities such as Lagos, Abuja, and Port Harcourt on Saturday, with many outlets remaining closed. Petrol prices now range between ₦1,050 and ₦1,150 per litre, depending on location.
On Friday, Dangote Petroleum Refinery raised its petrol price from ₦899 to ₦955 per litre, prompting retail stations to adjust their prices or temporarily close to monitor market trends.
“There is no scarcity of the product; stations are simply closed as dealers are being cautious about potential losses,” explained a major marketer, who spoke anonymously to Punch.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also pointed to international crude oil prices as a key factor influencing local petrol prices. PETROAN President Billy Gillis-Harry noted that Brent crude was trading at $80.85 per barrel, and the OPEC basket stood at $81.72 per barrel.
He attributed the price surge to new US sanctions on Russian oil, which have caused global oil prices to reach a four-month high. “The rising crude oil prices will inevitably affect the domestic cost of PMS,” Gillis-Harry said.
Gillis-Harry emphasised that petrol prices are now determined by market forces under the Petroleum Industry Act (PIA), stating, “Our selling rate reflects our buying rate. Marketers should not be blamed for the price increase; it is an external factor.”
He called on the Federal Government to privatize refineries and promote competition in the downstream sector to stabilize prices. “Privatizing refineries will increase efficiency, reduce the government’s financial burden, and benefit Nigerian consumers,” he added.
In a position paper presented at the inaugural Petroleum Industry Stakeholders’ Forum in Abuja, PETROAN proposed several strategies to stabilize the sector, including:
Privatization of Refineries: To enhance operational efficiency and reduce costs.
Infrastructure Development: Addressing storage and distribution network challenges.
Crude Supply to Local Refineries: Prioritizing access to crude for domestic refining.
Cross-Border Smuggling: Strengthening efforts to combat fuel smuggling.
Monitoring Framework: Implementing robust systems to evaluate downstream operations.
Marketers have urged the government to foster a business-friendly environment by facilitating access to affordable financing and improving infrastructure, which would help reduce operational costs and make petrol more affordable for Nigerians.
Gillis-Harry also commended President Bola Tinubu for fully deregulating the industry and unifying exchange rates, policies he believes will unlock growth and sustainability in the petroleum sector. “These policies are essential for fostering growth and sustainability,” he said.