BREAKING: “Market Will be Flooded”: Fuel Prices to Drop as Marketers Negotiate with NNPC, Refineries

Nigerians will soon pay lower fuel prices thanks to renewed negotiations between the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and refineries in the country.

PETROAN president Mr. Billy Gilly-Harry revealed that the body is in negotiations with the Aradel Refinery, Dangote Refinery, and Edo Refinery, as well as the Nigerian National Petroleum Company (NNPC Ltd), to reduce fuel’s landing costs so that marketers can sell to Nigerians at better rates.

PETROAN negotiates with NNPC, refineries

Speaking in a chat with THE SUN, Gilly-Harry expressed hopes of a positive outcome to the negotiations, adding that Nigerians would soon be able to access fuel at cheaper rates.

PETROAN is leveraging its numbers in the negotiations, according to its president, and also engaging the refineries with data provided by these members, which they use for product allocation.

Gilly-Harry added that when the NNPC finally brings the Warri and Kaduna refineries back into business, Nigerians can expect prices to drop further due to increased supply.

He said:

“By the time we have all these refineries running and other ones producing, the market will be flooded and we can begin exports.”

This means that an increased supply of fuel will allow market forces to come into play and bring about better pump prices for Nigerians. It will also eliminate the incidences of long fuel queues and increased transportation fares, which Nigerians know to be characteristic of the festive seasons.

About a week ago, Legit.ng reported a crash in pump prices of fuel from N1200 to N1025 as a market reaction to the competition between the Dangote Refinery and the Port Harcourt Refinery.

According to NNPC, the Port Harcourt Refinery is not yet operating at full capacity and only supplies a few marketers and the NNPC retail outlets.

Oil marketers requested Dangote Refinery lower its prices from N970 per litre to match the NNPC, which has also crashed its prices by N20.

Petrol landing cost drops

Meanwhile, Legit earlier reported that the cost of landing petrol dropped by N36 to N900.28 per litre.

The information is based on data from the Major Oil Marketers Association of Nigeria (MOMAN).

The cost is a 3.62% decline from the previous N936.75 per litre recorded last week.

According to reports, the price reduction is due to crude oil prices and foreign exchange rates.