As discussions around fuel prices continue to heat up in Nigeria, Billy Gillis-Harry, the national president of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), has provided crucial insights into why we might soon see prices exceeding N1,000 per litre.
According to Gillis-Harry, the outcome of the ongoing Naira-for-crude deal discussions between Dangote Refinery and the Nigerian government, represented by the Nigerian National Petroleum Company Limited (NNPC), plays a significant role in determining future petrol prices. He highlights that recent price hikes, which saw petrol rates rise from N860 to between N930 and N960 per litre at MRS filling stations and others, are influenced by broader economic and regulatory factors.
“It's essential to understand that the deregulation of the downstream sector is fundamentally altering the pricing landscape. We cannot point fingers at Dangote Refinery or the federal government without assessing all the facts,” he stated in an interview with Daily Post. “Has anyone officially confirmed that the Naira-for-crude deal has been stopped? Until there is a formal announcement, we should avoid jumping to conclusions.”
Gillis-Harry emphasized that speculations regarding the discontinuation of the Naira-for-crude deal should not dictate the narrative. He elaborated on how the NNPC has been actively supplying crude oil, which indicates that other factors might be at play. “Our conversations with the Honourable Minister of Petroleum have revealed that there are processes in place to review the situation, which suggests that the Naira-for-crude deal is still operational,” he added, urging for a careful analysis of the situation rather than hasty judgments.
He also expressed concerns about potential misinformation that could lead to further market instability. “It's crucial that any information presented is backed by concrete evidence rather than speculation,” he commented. “As a businessman, I need to be cautious about my decisions based on the current economic climate, but that does not equate to blackmailing the system.”
With regard to future price fluctuations, Gillis-Harry predicted a continuation of instability in fuel prices for the foreseeable future. “The price will not stabilize until we reach a consistent average,” he warned. Current economic and environmental factors are expected to drive prices higher, making the prospect of petrol reaching N1,000 per litre increasingly likely.
As discussions unfold, some stakeholders within the industry suggest that the pressure on prices is coming from marketers and retailers who store products to maximize profits. To this, Gillis-Harry argued that “the market should ultimately dictate prices,” and insisted that empirical evidence must guide any pricing strategy moving forward.
In conclusion, while the future of fuel prices remains uncertain, Gillis-Harry's insights underscore the complexities at play in Nigeria's petroleum market. As consumers brace for potential increases, it’s clear that a multifaceted approach that considers economic indicators, government policy, and market forces will shape the future of fuel in the country.
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