The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), assured Nigerians that a reduction in petrol pump prices will become evident within the week.
This follows last week’s adjustment by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, which lowered the ex-depot price of petrol to ₦899 per litre in Lagos.
While many filling stations are yet to reflect the new pricing, PETROAN President Billy Gilly-Harry stated on Channels Television’s “Sunrise Daily” on Monday that the changes would soon take effect as members begin loading at the revised rate.
“But I believe from today, when members start loading from both NNPC and Dangote at this new price, it will reflect in the market,” Gilly-Harry said.
He commended some members, particularly in Abuja, for proactively reducing their pump prices to below ₦1,000 even before the announcement.
“We don’t encourage our members to sell at a loss because our focus is to serve Nigerians.
To do so sustainably, we must ensure marginal profits to cover costs and remain in business,” he added.
The delay in implementing the new pump price is attributed to existing old stock purchased at higher rates.
“This reduction, if applied immediately, could result in losses for retailers who bought at ₦970, factoring in transportation and logistics costs.
By the time it gets to their retail outlets, the price is significantly higher.
They must sell at a minimal, marginal profit as stipulated by the Petroleum Industry Act (PIA),” Gilly-Harry explained.
He praised NNPCL and Dangote Refinery for their efforts in reducing the price of petrol and expressed optimism about the impact on the market within the coming days.
