The Petroleum Products Retail Outlets Owners Association of Nigeria PETROAN Seeks International Partnerships with proposals for the retail pump price of petrol to be set at N1,200 per litre. PETROAN’s National President, Mr. Billy Harry, revealed the association’s plans to collaborate with refineries in Kazakhstan and Houston to ensure a continuous supply of petroleum products under mutually beneficial terms.
In a telephone interview with Daily Sun, Harry disclosed that discussions were underway with refineries in Houston, Texas, to secure the necessary supplies. Despite acknowledging the current forex challenges, PETROAN is exploring alternative payment solutions to mitigate pressure on Nigeria’s forex market.
Harry emphasized the association’s commitment to adhering to international best practices in payment methods, ensuring transparency and cost-effectiveness. He stated that PETROAN aims to bring in products at more affordable prices for its members by seeking external partners.
With the recent inclusion of the Port Harcourt refinery, Harry expressed optimism about potential relief in the fuel distribution value chain. However, he highlighted the urgent need for the rehabilitation of the Warri and Kaduna refineries to ensure overall stability.
PETROAN Seeks International Partnerships, decision to seek international partnerships stems from the desire to enhance the purchasing power of Nigerians by providing cheaper and more accessible fuel. Harry noted the challenges faced by fuel retailers, citing narrow profit margins and rising overhead costs, including diesel to power generators.
To cope with economic realities, fuel retailers have implemented survival strategies such as reducing overhead costs and staff cuts. Harry stressed the unsustainability of fuel prices at N1,200 per litre, arguing that as long as NNPC maintains prices enabling retailers to dispense at less than N1,000 per litre, any hike to N1,200 doesn’t make sense.
In response to the N1,200 per litre proposal, NNPC Limited’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, clarified that NNPC has not clashed with PETROAN on this matter. He affirmed that NNPC has removed the subsidy entirely, aligning with the association’s stance on maintaining affordable fuel prices.
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