Petrol Price: Marketers Caution Against Panic Buying

The Petroleum Products Retail Outlets Owners Association of Nigeria, (PETROAN), has cautioned Nigerians against panic buying amid uncertainty over the continuation of the naira-for-crude sale deal between Dangote Refinery and the Nigerian National Petroleum Company Limited, (NNPC)

The association also noted the news making the rounds in the media space that the suspension of sales in Naira by Dangote Refinery is the reason for the panic buying.

“We wish to reassure the public that this is not a justification for panic buying. The Nigerian National Petroleum Company Limited (NNPC) has two functional refineries, and there are other modular refineries, as well as importers, that are also supplying petroleum products to the market.

Therefore, we see no reason for the threat of panic buying. We urge Nigerians to remain calm and go about their normal activities, as there is no shortage of petroleum products” it said.

The Association reassured the general public that the tension leading to panic buying is baseless. The federal government, ministry of Petroleum and regulatory agencies are committed to ensuring a seamless supply of petroleum products to meet the demands of Nigerians, it said.

National public relations officer of PETROAN, Joseph Obele, assured that PETROAN remains a strong advocate for the local production of petroleum products, adding, “We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.”

However, the petroleum marketing body recognised that local production alone may not be sufficient to meet the country’s demand for petroleum products, and thus supports the position that the window for importation of petroleum products should remain open.

This it said will ensure that the country has a stable and sustainable supply of petroleum products, while also promoting competition and keeping prices in check.

Obele added, “We are optimistic that the Ministry of Petroleum Resources will continue to work in the best interest of Nigeria and come up with policies and solutions that will ensure the sustainable supply of petroleum products.

“We urge Nigerians to remain calm and go about their normal activities without fear of scarcity.”

Regarding the recent Naira-for-Crude initiative, the Association notes that the test run duration of six months has ended, and the federal government is currently reviewing the policy to determine its future.

Obele, in the statement said that contrary to some reports, the policy was not terminated but rather is undergoing a review after the initial test run period.

“We understand that the Ministry is still considering the feasibility and sustainability of the Naira-for-Crude initiative. We urge the Ministry to continue its deliberations, taking into account the interests of all stakeholders, including petroleum products retailers, to ensure that any policy decisions align with the nation’s economic goals.”

Meanwhile, the national president of PETROAN Dr Billy Gillis-Harry while addressing newsmen in Abuja stated PETROAN’s opposition to the sale of petroleum products or any other products within Nigeria in dollars.

Gillis-Harry, expressed the belief that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation.

“We urge the government to ensure that all transactions within the country are conducted in the local currency, the Naira, to protect the economy and the welfare of Nigerians,” he said.

Gillis-Harry advocates for the evaluation and review of the Petroleum Industry Act (PIA) to examine necessary adjustments that will ensure the Act aligns with the current realities of the petroleum industry. We believe that a comprehensive review of the PIA will provide opportunities to address emerging challenges, promote investment, and enhance the overall efficiency of the petroleum sector.

“We also wish to commend the federal government for its commitment to allowing market forces to determine pricing, which encourages healthy competition and prevents the monopoly of any kind. This approach will ensure that the petroleum market remains competitive, innovative, and responsive to the needs of Nigerians,” he added.