The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gilli-Harry, has issued a warning of a potential increase in the price of Premium Motor Spirit (PMS), also known as petrol, in the coming days. This warning comes despite the recent commencement of petrol production by the Dangote Refinery, which some believe could lead to a decrease in the current retail price of petrol.
According to Gilli-Harry, the current price of petrol, which hovers around ₦600 per liter, is unsustainable due to the challenges faced by the Nigerian National Petroleum Company Limited (NNPCL) in maintaining an adequate supply of the product nationwide. He emphasized that the NNPCL’s sale of petrol at ₦590 per liter is not a viable solution, as it places a significant burden on retailers.
Gilli-Harry advised Nigerians to prepare for a scenario where petroleum products are sold at prices dictated by market forces. He acknowledged the existence of fuel subsidies globally but stressed the need to weigh the benefits of subsidizing PMS against other pressing challenges, such as healthcare.
The NNPCL has admitted to owing its petrol suppliers $6 billion, which has contributed to the fuel queues in filling stations across the country. Gilli-Harry commended the NNPCL for its transparency but noted that the situation remains challenging for retail outlet owners. He also mentioned that PETROAN and other industry stakeholders are exploring innovative solutions to address the current crisis.
Gilli-Harry highlighted the NNPCL’s dominance in the importation of PMS due to its access to dollars and a guaranteed market. However, he emphasized the need for creativity and out-of-the-box thinking to ensure that Nigerians have access to adequate petroleum products.
