Petrol Price Reduction Threatening Our Businesses – Oil Marketers

President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris raised concern during Channels Television’s Business Morning on Tuesday. According to him, fluctuating petrol prices in the last few weeks are constituting potential threats to the survival of businesses of its members.

This was made known by the President of PETROAN, Billy Gilly-Harris, when he appeared as guest on a Channels Television programme, Business Morning, on Tuesday, March 11, 2025. No sooner after, the NNPCL also reduced its price at its retail stations, further deepening rivalry between the two dominant players.

Billy-Harris said “In our consistently weekly reviews, we discovered that the size of loss, and the possibility of most of us getting out of business is glaring at us in the face. Because in today’s Nigeria, we have collaborative efforts being made between all the stakeholders, and we reach out to one another to know how the businesses are doing.

The management of Dangote Petroleum Refinery had on February 26, 2025, announced a reduction in the ex-depot price of petrol, from ₦890 to N825 per litre, effective from February 27, 2025. It stated that this strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.

In response, the NNPC had on February 3, 2025, reduced the pump price of petrol sold at its outlets across the country as the competition in the downstream sector of the oil industry intensifies. “I have always said that every business can only survive by making some minimal profits that are commensurate to the price of paying the cost of doing business.

“We are fully aware that the international prices of crude oil and other related expenses are also being reduced. But when we invest to buy products at say N880, we are not going to sell at that price. And if such products become reduced to N840, N850, N860 or even N870 per litre, it becomes challenging how we will be able to recover our costs.” Commenting on price monopoly in the downstream sector, Gilly-Harris said its members can either import products or buy from local refineries, however, it would not sell products at the expense of the survival of PETROAN members’ businesses.

He said “Yes, we have been in the forefront of always implementing what stakeholders agree. We have the capacity to import our products. We also have the capacity to buy locally refined products. But we see that prices consistently shift up or down, and there is no clear business consultation on how this should be done. That is why we said the NMDPRA and the consumer protection agency should swing into action and be able to work together with other stakeholders so that we can be able to have a stable market and a stable price.”