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The Digest:

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has clarified its stance against Dangote Refinery's recent sharp price reductions, stating that while it supports lower fuel costs, the abrupt cuts have left its members facing billions in losses on already-purchased stock. The association's president explained the need for advance notice to prevent crippling financial harm to retailers.

Key Points:
  • Dangote slashed the gantry price from ₦828 to ₦699 per litre last Friday.
  • He vowed to enforce a pump price of ₦739, accusing some marketers of sabotage.
  • PETROAN President Billy Gillis-Harry said members bought bulk fuel just before the price drop.
  • The immediate ₦129 per litre reduction translates to billions in losses for retailers.
  • The association seeks prior notice for price changes to protect business viability.
  • Gillis-Harry stressed support for Dangote but called for market-driven pricing.
  • He advocated for multiple supply sources to prevent monopoly in the downstream sector.
In a deregulated market, the push for affordability collides with the reality of inventory, where a price cut intended to relieve the public can become a sudden debt for those who bridge the supply chain.

Sources: Channels Television, Vanguard