The Federal Government plans to meet refiners, depot operators, fuel marketers and retail outlet owners on Tuesday to seek agreement on competitive pricing for petrol and other petroleum products, with the interests of Nigerian consumers in mind. The consultation was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a notice issued by its spokesperson, George Ita-Ene, in line with the Petroleum Industry Act and the Federal Competition and Consumer Protection Act.
The meeting comes after petrol prices climbed sharply to between N1,395 and N1,450 a litre in Abuja and several other parts of the country. At the time of reporting, international crude prices had also fallen by more than 3%, with Brent crude trading at $100.50 a barrel and West Texas Intermediate at $92.43.
Against that backdrop, Dangote Refinery cut its gantry price by N25 a litre on Monday, bringing it down to N1,325. The reduction followed mounting pressure on refiners and marketers to pass lower crude costs on to consumers.
The refinery’s decision brought to an end a sustained rise in Nigerian petrol prices that had lasted more than two weeks. With the 700,000-barrel-per-day facility lowering its wholesale price, pump prices could begin to ease across the country in the coming days as fuel retailers assess their pricing options ahead of the government consultation.
N500 per litre petrol price not feasible, says Gillis-Harry
Billy Gillis-Harry, national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said a reduction in petrol prices could not be excluded from the issues to be discussed at Tuesday’s consultation involving the NMDPRA, the Federal Competition and Consumer Protection Commission and other stakeholders.
He nevertheless rejected the N500-per-litre price sought by organised labour, describing it as commercially impractical under current market conditions.
Gillis-Harry said PETROAN and other participants would prioritise the welfare of Nigerians, but could not do so in a way that placed their businesses at an unsustainable loss.
“Nigerians will always receive the best that all of us can provide. But we cannot operate to our own detriment. We will do everything necessary to deliver the best possible outcome for the Nigerian people,” he said.
He also argued that petrol could not realistically sell for N500 a litre without reviving subsidies that would damage the economy rather than solve the underlying problem.
“Anyone insisting on N500 per litre should establish a refinery, arrange the required logistics and operate retail outlets capable of selling at that price,” he said.
Civil servants represented by the Joint National Public Service Negotiating Council have written to President Bola Tinubu demanding either a reduction in the pump price of petrol to N500 a litre or an increase in the minimum wage to N500,000.
