PENGASSAN Gives Actual Price Filling Stations Should Sell Petrol in Nigeria

• PENGASSAN says Nigerians are being exploited by marketers selling petrol at inflated prices despite the fall in crude oil prices
• The union has called on the NMDPRA to implement a transparent pricing template to curb the exploitation
• PENGASSAN also explained why government refineries are struggling to operate and suggested a lasting solution

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on marketers, including the Dangote refinery, to reduce the retail price of petrol.

Festus Osifo, the association's president, made the call while speaking to journalists on Monday, June 16, stating that petrol should ideally be priced between N700 and N750 per litre, not the current price of N870 to N910.

Osifo condemned the current petrol price range of N870 to N910, describing it as exploitation by petroleum marketers.

He argued that although global crude oil prices have fallen to around $60 per barrel, petrol prices at retail stations have remained high.

Osifo stated.

"If you look at the PLAT cost per cubic metre of PMS and convert that to litres in our local currency, with crude oil at $60 per barrel, petrol should realistically be selling between N700 and N750 per litre."

The PENGASSAN president urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a transparent pump pricing template to curb exploitative practices by marketers.

He also advocated for the regulator's role in ensuring fair pricing amidst fluctuating global oil prices, Punch reports.

Why are government refineries not working

Speaking further, Osifo criticised the frequent shutdowns of Nigeria's state-owned refineries, attributing these interruptions more to political motives than operational challenges, BusinessDay reports.

He said there is a need for the federal government to adopt PENGASSAN’s long-standing recommendation of a management model similar to the Nigerian Liquefied Natural Gas (NLNG) approach, where the government holds 49% and private investors hold 51%.

His words:

"We all understand the politics that come in when it comes to national assets management,

"We have consistently urged the government to adopt the NLNG model, where private investors hold a majority stake, to enhance operational efficiency and reduce political interference.

Concerning the upstream sector, Osifo welcomed the recent executive order aimed at cutting operational costs.

He noted the burden on companies forced to secure oil installations themselves due to persistent insecurity.

He also disclosed that the union had resolved its dispute with Sterling Oil Company over expatriate hiring practices.

Marketers list 4 concerns as Dangote's plan for free fuel distribution

Earlier, Legit.ng reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have expressed strong concerns over the decision by Dangote Refinery to venture into the direct distribution of fuel across the country.

The oil marketers warns that the move could cripple businesses and lead to massive job losses in Nigeria’s petroleum value chain.

The president of PETROAN explained to Legit.ng on why the government needs to step in.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng