"Market Forces Will Determine": Oil Marketers Warn Nigerians to Prepare for Higher Petrol Prices
- Petrol marketers have urged Nigerians to brace up for increased prices of the product in the coming weeks
- They claim the current price of petrol has become unsustainable for the NNPCL to maintain, given the many challenges it faces
- The marketers, however, implored Nigerians to buy petroleum products at the price that the market forces will determine
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
Billy Gilly-Harry, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has warned Nigerians to expect an increase in petrol prices shortly, stating that fuel will now be sold at prevailing market rates.
He made this statement while appearing on Channels Television's Morning Brief on Tuesday, September 3, 2024.
Source: UGC
Gilly-Harry also indicated that maintaining the current petrol price of around N600 per litre may become unsustainable as the Nigerian National Petroleum Company Limited faces challenges in ensuring adequate fuel supply across the country.
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Due to the ongoing scarcity, petrol prices have surged to around N950 and even exceeded N1000 per litre at non-NNPCL filling stations across the country.
The NNPCL had recently raised the petrol pump price to N855 per litre at its retail stations and N897 per litre at stations operated by independent marketers.
Gilly-Harry pointed out that although the NNPCL sells fuel at a price lower than its landing cost, this situation indicates that a loss is incurred somewhere in the supply chain.
According to Channels TV, the PETROAN boss urged Nigerians to brace up for market-driven petrol prices in the coming months.
He said:
“For me, what I will say is to encourage Nigerians to buy petroleum products at the price that the market forces will determine."
He said that the country has many other challenges that require subsidy, and so opportunities should not be wasted on oil and gas, which are natural blessings for Nigerians.
He explained that the steep petrol prices are a result of the extensive distances the NNPC must cover to import fuel into the country.
He suggested that Nigeria should focus more on exporting agricultural and pharmaceutical products to increase the inflow of dollars.
Additionally, he called on governors to assist by ensuring that farmers have easier access to land.
Dangote Refinery begins petrol production
Meanwhile, Legit.ng earlier reported that Aliko Dangote, the president of the Dangote Group, had stated that the fuel processed at the Dangote Refinery would contribute to the elimination of all fuel lines in Nigeria.
Noting that it will bring stability, progress, and development, Dangote clarified that it will also ensure that the naira's distortion is corrected.
Speaking further, he stated that as soon as the business finalises its agreement with NNPC Ltd., refined products from the refinery will be sold in the Nigerian market.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
