The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the country’s filling stations may shut down unless the federal government provides a bailout to sustain the current lower petrol price or allows the market to determine a fair price. PETROAN’s national president, Billy Gillis‑Harry, says the present pump prices are not guided by market fundamentals but by artificial adjustments that could have damaging consequences.
In an interview, Gillis‑Harry explained that the recent drop in fuel prices—down to between N930 and N945 per litre in Abuja last week—does not reflect the actual cost of importing, refining, or distributing petrol. He emphasized that the market is being distorted because prices are not determined by supply and demand dynamics or real cost structures. This distortion could lead to supply shortages, triggering another round of price hikes or scarcity.
Gillis‑Harry stressed the need for “right sizing, right pricing, fair pricing, and honest value” in the petroleum market. He argued that reliance on a single dominant refinery, Dangote, is unhealthy for competition and stability in the downstream sector. The PETROAN president warned that many marketers will eventually lack the capital to continue purchasing product, leading to supply shortages and potential price volatility.
The situation highlights the need for government intervention to allow market forces to set a fair price for petrol. Gillis‑Harry noted that the sooner the market returns to fair pricing, the better the price determination will be, and warned that the current pricing is not sustainable in the long term. PETROAN’s warning comes as the Nigerian government faces pressure to maintain affordable fuel prices amid economic challenges, underscoring the need for a sustainable solution that balances the needs of consumers, marketers, and the economy as a whole.
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