By Abigail David
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners and fuel importers to reduce ex-depot and pump prices of petroleum products in line with the recent decline in global crude oil prices.
PETROAN National President, Billy Gillis-Harry, made the appeal in a statement issued on Friday in Abuja, saying lower crude oil prices should translate into cost savings for Nigerian consumers.
According to him, recent developments in the global oil market, including easing geopolitical tensions, have pushed crude oil prices downward, creating an opportunity for stakeholders in the downstream sector to adjust fuel prices accordingly.
Gillis-Harry noted that Brent crude has fallen to between 77 and 78 dollars per barrel following the ceasefire agreement between the United States and Iran and expectations of improved oil exports through the Strait of Hormuz.
He added that market analysts project Brent crude to trade between 75 and 82 dollars per barrel next week, while West Texas Intermediate (WTI) crude is expected to range between 72 and 79 dollars per barrel.
The PETROAN president attributed the decline in crude prices to the implementation of the U.S.-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global oil demand.
He, however, warned that renewed geopolitical tensions, supply disruptions or unexpected production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies could reverse the downward trend.
Gillis-Harry expressed concern that the landed cost of imported petroleum products appeared to be lower than the prices offered by some domestic refiners, stressing the need for a more competitive downstream petroleum market.
He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers, arguing that increased competition would help moderate prices, discourage monopolistic practices and ensure a stable supply of petroleum products nationwide.
According to him, a competitive market remains one of the most effective ways to improve efficiency, lower costs and protect consumers, while encouraging industry players to align fuel prices with prevailing market conditions.
