Drop Fuel Prices To Reflect Lower Oil Costs, PETROAN Urges Refiners, Importers

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) operators in the downstream petroleum sector to cut petrol pump prices to reflect the current price of crude oil after Brent crude oil slipped to about $77–$78 per barrel, saying the decline should be passed on to consumers to ease rising transportation and living costs.

The national president of PETROAN, Billy Gillis-Harry, who made this call on Friday, called on refiners, depot owners, and petroleum products importers to reflect the recent decline in

international crude oil prices in their ex-depot and retail pump prices of petroleum products.

Prince Gillis-Harry, stated that the recent drop in global crude

oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the

savings on lower crude costs to Nigerian consumers.

He emphasised that market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public. Recent developments in the global

oil market indicate that crude oil prices are experiencing a downward trend.

Brent crude has fallen to approximately $77–$78 per barrel following the ceasefire agreement

between the United States and Iran and expectations that oil exports through the Strait of

Hormuz will gradually normalise.

Market analysts have noted that crude oil prices are currently under downward pressure,

although geopolitical risks remain.

Current projections suggest that Brent crude may trade within the range of $75–$82 per barrel

next week, while West Texas Intermediate (WTI) crude is expected to trade between $72–$79 per barrel.

Factors contributing to the decline in crude oil prices include: Continued implementation of the U.S.-Iran peace agreement; Increased crude oil exports from the Middle East; Concerns over weaker global oil demand.

While factors such as a breakdown in peace negotiations, fresh supply disruptions, or

unexpected production cuts by OPEC and its allies could trigger upward price movements, the

prevailing market outlook remains relatively stable to bearish.

Prince Gillis-Harry expressed concern that, in some instances, the landing cost of imported

petroleum products appears to be lower than the prices offered by domestic refiners.

According to him, this development is surprising and underscores the need for a more

competitive downstream petroleum market that guarantees consumers access to the most

affordable products available.

He therefore called on the Nigerian Midstream and Downstream Petroleum Regulatory

Authority (NMDPRA) to continue issuing import licences to qualified marketers. He explained

that increased competition among suppliers would help moderate prices, discourage

monopolistic tendencies, and ensure a steady supply of petroleum products across the country.

The PETROAN President maintained that competition remains one of the most effective

mechanisms for driving efficiency, reducing costs, and protecting consumers. He noted that a

competitive market environment would encourage all market participants to review their prices

downward in line with prevailing market realities.

In a bid to further encourage competition that will benefit consumers, PETROAN also called on the group chief executive officer of NNPC Limited, Engr. Bayo Ojulari, to facilitate talks with the two Chinese firms that have expressed interest in operating the Port Harcourt and Warri

Refineries. Prince Gillis-Harry stated that if these refineries are successfully revived and

operated as private-sector-driven facilities, petroleum product prices are expected to decline

further due to improved efficiency and increased domestic refining capacity.

He added that the resumption of operations at the Port Harcourt and Warri Refineries under

competent private management would enhance supply stability, promote healthy competition,

and ultimately lead to more affordable petroleum products for Nigerians.

For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and

refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges.

Gillis-Harry reiterated PETROAN’s commitment to advocating for a transparent, competitive, and consumer-friendly downstream petroleum sector that delivers fair pricing, energy security, and sustainable economic growth for all Nigerians.