Crude Price Surge: Nigerians should brace for fuel price swings until more refineries emerge – PETROAN
Maureen Aguta
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, has warned that Nigerians may continue to experience fluctuations in petrol prices until the country establishes more refineries capable of meeting domestic demand.
He, however, urged Nigerians not to panic over rising crude oil prices in the international market, expressing optimism that the Federal Government could introduce measures to moderate domestic petrol prices despite global market volatility.
His remarks come amid concerns that the recent surge in international crude oil prices could trigger another increase in petrol pump prices, worsening the financial pressure on households and businesses.
According to Oilprice.com, Brent crude sold for $117.10 per barrel as of 11.10 a.m. on Friday, while Murban crude traded at $114.39 per barrel and West Texas Intermediate (WTI) at $102.97.
Speaking in an interview on Sunday, Gillis-Harry said the Federal Government, under President Bola Tinubu, had initiated a mechanism that could help stabilise petrol prices, although the policy had yet to be fully implemented.
He cited the government’s directive to the Nigerian National Petroleum Company Limited (NNPC Ltd) to sell petrol at a discounted rate as an intervention that could cushion the impact of rising international crude prices on Nigerian consumers.
According to him, the policy could help moderate pump prices if the government successfully translates its intentions into an effective pricing arrangement.
He said: “Nigerians should not have any fear for that (pump price increase). Government has started the process, which, in my belief, has not been activated, but it’s a good policy, and we should give kudos to the government for that. We do hope that’s true and it actually comes to fruition.”
The PETROAN president explained that the government’s intervention appeared aimed at stabilising the economy by ensuring that petroleum products remained available and affordable to consumers.
He added that the directive allowing NNPC to operate without taking profits could provide room for the government to moderate petrol prices, depending on how the arrangement was implemented.
“That’s the only reason why the government can ask NNPC to work without taking profits,” he said.
However, Gillis-Harry cautioned that such interventions could not permanently insulate Nigeria from global crude oil price movements, particularly while the country remained dependent on international market dynamics for the cost of petroleum products.
He noted that changes in crude oil prices could cause petrol pump prices to rise or fall, depending on prevailing market conditions and the pricing arrangements adopted by suppliers.
“Given international crude pricing dynamics, petrol pump prices can go up, it can come down. And so I won’t be surprised if prices shift a little bit, either up or down,” he said.
He maintained that expanding domestic refining capacity remained the most sustainable way to reduce Nigeria’s exposure to international crude oil price volatility.
According to him, the availability of more functional refineries capable of meeting domestic consumption would encourage competition, improve product availability and help moderate prices.
Gillis-Harry said Nigerians should therefore understand that fluctuations in petrol prices could persist until the country developed sufficient refining capacity to guarantee a consistent domestic supply of petroleum products, particularly Premium Motor Spirit (PMS), otherwise known as petrol.
“We should consistently know that prices of fuel will go up to come down and just be prepared for that kind of dynamics until we have a lot of refineries in Nigeria that can guarantee consistent availability and competition driving our pricing,” he said.