Marketers Give Solution to Rising Petrol Prices in Nigeria
- PETROAN called on the federal government to urgently restart inactive government-owned refineries to boost local fuel supply
- Petrol prices have climbed to about N1,400 per litre in Lagos and Abuja, with some northern areas paying up to N1,500
- Oil marketers also pointed to inadequate crude supply to domestic refineries as a key driver of rising fuel costs
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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.
Oil marketers in Nigeria have outlined steps they believe could drive down petrol prices, centring on the revival of idle government refineries and stronger competition within the local refining sector.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is pushing the federal government to urgently bring its dormant refineries back into production as a direct response to the recent surge in fuel costs across the country.
Source: Facebook
PETROAN’s National Public Relations Officer, Joseph Obele, pointed to inactive government refineries as a key issue.
Obele said.:
“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries."
Port Harcourt, Warri and Kaduna refineries in focus
PETROAN has specifically named the Port Harcourt, Warri and Kaduna refineries as facilities that should be fully restored.
The association argued that bringing multiple refineries online would introduce greater competition into the market and reduce the country’s dependence on any single major supplier for its fuel needs, Punch reports.
The call comes as petrol prices have risen sharply in recent weeks.
Fuel was selling at around N1,400 per litre in Lagos and Abuja, with prices climbing to N1,500 in parts of northern Nigeria.
This has happened even as the Dangote Petroleum Refinery continues to operate at its 700,000-barrel-per-day capacity.
PETROAN also urged the government and NNPC to ensure that any rehabilitated refineries are run efficiently and remain commercially sustainable over the long term.
Crude supply seen as critical factor
Beyond refinery capacity, marketers identified access to affordable crude oil as another factor keeping fuel prices high.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) had previously asked the federal government to intervene in domestic crude pricing, warning that rising international oil prices increase production costs for local refiners and ultimately affect consumers at the pump.
Source: Getty Images
The Dangote Refinery has itself faced crude supply challenges.
Reuters reported that the facility needs between 13 and 15 crude cargoes every month but has been receiving fewer than required from NNPC, pushing it to source some crude at international market prices instead.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has maintained that pump prices are determined by market forces under the country’s deregulated downstream sector and that it does not fix them.
FG takes action to crash prices as petrol cost
Earlier, Legit.ng reported that the federal government has taken steps to address rising petrol prices, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announcing plans to convene a consultative meeting with key players in the downstream petroleum sector.
The NMDPRA said the meeting, scheduled for Tuesday, will bring together refiners, depot owners, marketers and retailers to discuss the pricing of Premium Motor Spirit (PMS) and other petroleum products.
The regulator said the engagement is in line with the provisions of the Petroleum Industry Act
Source: Legit.ng
