The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has warned that Nigerian filling stations may shut down without a federal government bailout to sustain the current lower petrol price or allow the fair market price to prevail.
The national president of PETROAN, Billy Gillis-Harry, disclosed this in an interview with journalists on Monday.
We reported that fuel prices in Abuja dropped last week to between N930 and N945 per litre, depending on the location.
Reacting, Gillis-Harry insisted that the current lower pump prices are “not in any way guided by fair market pricing.” According to him, the decrease neither reflects supply-demand dynamics nor the cost realities of importing, refining, or distributing petrol. He said petrol prices are not determined by actual market fundamentals; thus, the market is being distorted. Distorted markets always come with consequences.
Gillis-Harry warned that eventually, many marketers will lack the capital to continue purchasing products. Once that happens, supply shortages could re-emerge — potentially triggering another round of price hikes or scarcity.
He stressed the need for what he calls “right sizing, right pricing, fair pricing, and honest value.” In other words, petrol must be priced according to real market conditions, not artificial adjustments that appear beneficial on the surface but are damaging underneath.
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