The reasons why petrol price in Nigeria would soon cross N1,000 per liter were outlined yesterday by Billy Gillis-Harry, National President, Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN).
Speaking on the recent negotiations between the Dangote Refinery and the government of Nigeria over the Naira-for-crude agreement, Gillis-Harry said economic and environmental factors are driving the hike in fuel price, as reported by Daily Post.
This comes following a recent price hike in petrol at some gas stations, including those owned by Dangote Refinery business partners, MRS, whose prices rose from N860–N880 per litre to N930–N960 per litre.
Gillis-Harry explained the price realignments, stating:
“You can’t blame anyone. It’s the deregulation of the downstream sector. It’s the economic and environmental factors at play.”
He also dismissed reports that the government had put on hold the Naira-for-crude deal, stating crude supply of oil to Nigeria was going on and that it was premature to make definite conclusions on the deal.
The PETROAN president explained that price fluctuation is unavoidable due to market forces.
He further stated that the Dangote Refinery, as a private entity in a free trade zone, has the right to determine prices based on business needs.
“The biggest refinery in Africa will naturally be responding to economic and environmental forces. Prices will always be at the mercy of demand and supply forces,” he further stated.
Gillis-Harry also warned that petrol prices will remain unstable in the immediate future with him stating:
“The stability of prices will only come after a consistent average has been attained. Until then, fluctuations are unavoidable.”
With some outlets already selling petrol at N950 per liter, he acknowledged that prices above the N1,000 per liter threshold was inevitable but went on to state that PETROAN would continue to monitor market conditions before issuing official price advice.
Answering questions on claims of fuel dealers and depot owners hoarding fuel to create prices, he dismissed them, stating market realities set prices and not manufactured scarcity.
