Oil marketers have distanced themselves from the recent hike in petrol prices, which has led to queues at filling stations across the country. The marketers attributed the price increase to the rise in crude oil prices in the international market.
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the benchmark for oil prices, Brent crude, stood at $80.85/barrel, while WTI oil and the OPEC basket were priced at $78.82 and $81.72/barrel, respectively.
PETROAN’s National President, Dr. Billy Gillis-Harry, stated that petrol prices are determined by market forces, as provided in Section 205 of the Petroleum Industry Act. He noted that refinery operators in Nigeria will respond accordingly to changes in crude oil prices.
Gillis-Harry emphasized that increasing crude oil prices would inevitably affect domestic costs, making it impossible for marketers to sell petrol at a lower price than they bought it. He advocated for the privatization of government-owned refineries and encouraging competition in the downstream sector to mitigate the impact of PMS pricing in Nigeria.
The association also called on the government to provide a more conducive business environment for retail outlet owners, including access to affordable financing and infrastructure development.
