By Barbara Nwaiwu
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners and fuel importers to adjust ex-depot and retail pump prices downward in response to the recent decline in global crude oil prices.
The National President of PETROAN, Mr Billy Gillis-Harry, made the appeal in a statement issued on Friday in Abuja.
Gillis-Harry said the drop in international crude prices presents an opportunity for operators in Nigeria’s downstream petroleum sector to transfer cost savings to consumers through lower fuel prices.
He stressed that pricing across the value chain should reflect prevailing market realities in the interest of fairness and to provide economic relief for Nigerians.
“Recent developments in the global oil market indicate that crude oil prices are experiencing a downward trend.
“Brent crude has fallen to approximately 77 to 78 dollars per barrel following the ceasefire agreement between the U.S. and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalise,” he said.
According to him, analysts observed that although geopolitical risks remain, crude oil prices continue to face downward pressure.
Gillis-Harry said projections indicate that Brent crude could 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.
He attributed the decline in crude prices to the continued implementation of the U.S.-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global demand for oil.
However, he warned that disruptions to peace negotiations, fresh supply interruptions or unexpected production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies could reverse the trend and push prices upward.
According to him, the overall outlook for the market remains relatively stable to bearish.
The PETROAN president also raised concerns that the landing cost of imported petroleum products appeared in some cases to be lower than the prices offered by domestic refiners.
He said the development highlighted the need for a more competitive downstream market capable of delivering affordable petroleum products to consumers.
Gillis-Harry therefore urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sustain the issuance of import licences to qualified marketers.
According to him, stronger competition among suppliers would help moderate prices, discourage monopolistic practices and support steady availability of petroleum products nationwide.
He maintained that competition remains one of the most effective tools for improving efficiency, reducing costs and protecting consumers.
Gillis-Harry added that a competitive market environment would encourage operators to review prices downward in line with prevailing market conditions.