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Fuel Scarcity |
Billy Gilly-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has urged Nigerians to prepare for higher prices of Premium Motor Spirit (PMS) in the coming days, stating that petrol will now be sold at market prices.
Gilly-Harry made this announcement on Tuesday while appearing as a guest on Channels Television’s Morning Brief.
He explained that the current petrol prices of around ₦600 per litre may no longer be sustainable, as the Nigerian National Petroleum Company Limited (NNPCL) struggles to maintain supply.
This warning comes as the NNPCL recently agreed to a debt of over $60 billion to PMS suppliers.
Currently, petrol sells for around ₦950 and above ₦1000 per litre at non-NNPCL filling stations due to the scarcity.
“We have been raising concerns that NNPC has been selling products at ₦590 per litre. Who is bearing the cost? Someone is, and we need to be transparent about the situation. We cannot politicize everything.
When asked if Nigerians should expect a price hike, he said, “I encourage Nigerians to buy petroleum products at market-determined prices. While we recognize the global practice of fuel subsidies, we must consider whether subsidizing PMS is the best use of resources given our other challenges, such as healthcare.
He also addressed the NNPCL's debt to oil suppliers.
“It is commendable that NNPC has acknowledged its debt. We have long advised that transparency is crucial in this sector to avoid panic.
“For us as retail outlet owners, this situation is concerning. We need to explore all possible solutions.
“Three days ago, we received information suggesting we should look for alternative solutions.
“NNPCL is currently the only entity with the capacity to import PMS or other products due to its access to dollars and a ready market, given that our refineries are not yet operational.
“This means we need to think creatively to serve Nigerians effectively.
“Our members have suffered greatly. You see our filling stations across the country, but there is no business. We need to find a solution to this crisis.
“When deregulation began in 2023, some members who had access to forex were importing. They stopped because they couldn’t sell at a sustainable price.
“There could be business arrangements with refineries and trading companies to help.
“Nigerians are innovative, and many are already working on solutions. PETROAN is also developing ideas to aggregate funds and find a solution.
“NNPC has the capacity, and we hope to resolve this issue quickly. Transparency is key so that everyone knows where we stand. PETROAN and other organizations are also working on this.
“There are many ways Nigerians can earn tradable dollars, such as through agriculture and pharmaceutical exports. Governors should make land accessible for farmers.
“PETROAN is in talks with trading companies to exchange naira for products.
“But we need approvals to make this work. Some members have import licenses that are dormant due to forex challenges.
He said he couldn’t comment on the current petrol stock in the country or how long it would last.
“NMDPRA is responsible for this and should inform Nigerians about the stock levels. I am aware that NNPC plans to supply products for distribution across the country on Saturday. We encourage NNPC to do more.
“To my knowledge, NNPC is not inactive. We just need faster solutions to ease Nigerians' suffering.”
He attributed the high petrol prices to the distance NNPC has to cover to bring products into the country.
Explaining the high prices, he said, “If you buy water from a nearby source, it will be cheaper than water brought from far away. The same applies to petrol. The cost of bringing in products today is high due to the distance.”
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