The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) has expressed shock and disbelief over the statement made by the Nigeria National Petroleum Company Limited (NNPCL) claiming that there are no plans to increase petrol prices, despite the depreciation of the naira against the dollar.
PETROAN argues that it would be unrealistic for marketers to believe that the price of petrol will remain stable given the harsh economic realities and the impact of the exchange rate.
In an interview with Media Talk Africa, Francis Dimkpa, the Rivers State Chairman of PETROAN, stated that the association is closely monitoring and gradually assessing the government’s policies, with the hope that the refineries will become operational, leading to a stabilization of the situation.
Dimkpa assured that PETROAN members are committed to distributing petrol nationwide at the best possible price, despite the challenges posed by the exchange rate.
“It is actually going to be dramatic for us to believe that the price of fuel will continue to be stable. The assertion by the Federal Government and NNPCL, stating that the price of fuel will neither increase nor decrease, is perplexing to us,” Dimkpa remarked.
“The Petroleum Product Retail Outlet Owners Association of Nigeria is closely monitoring the effect of the exchange rate on fuel prices. Considering that the current price has reached N600 per liter, it is expected that any further decline in the exchange rate could cause a drop in petrol prices, while a further rise in the exchange rate could result in higher prices,” he explained.
In response to NNPCL’s statement, which seemingly amounts to price fixing for other marketers, despite being a private limited company, Dimkpa highlighted that NNPCL, as a leader in the industry, has the ability to influence and drive petrol prices.
“NNPCL may not be fixing the price of fuel, but they are, in a way, driving and directing its price due to their position as industry leaders,” Dimkpa added.
PETROAN has consistently emphasized that the reactivation of the four refineries in Nigeria is the only solution to the crisis brought about by the removal of fuel subsidy.
