The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot owners and fuel importers to reflect the recent drop in global crude oil prices in ex-depot and pump prices of petroleum products.
The National President of PETROAN, Mr Billy Gillis-Harry, made the call in a statement on Friday in Abuja.
Gillis-Harry said the recent drop in global crude oil prices offered an opportunity for stakeholders in the downstream sector to pass the savings on lower crude costs to Nigerian consumers.
He emphasised that market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.
“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, market analysts have noted that crude oil prices are currently under downward pressure, although geopolitical risks remain.
He explained that current projections suggested that Brent crude may trade within the range of 75 to 82 dollars per barrel next week, while West Texas Intermediate (WTI) crude is expected to trade for 72 to 79 dollars per barrel.
The energy expert said factors contributing to the decline in crude oil prices included continues implementation of the U.S.-Iran peace agreement, increased crude oil exports from the Middle East and concerns over weaker global oil demand.
He said factors such as a breakdown in peace negotiations, fresh supply disruptions, or unexpected production cuts by Organisation of the Petroleum Exporting Countries (OPEC) and its allies could trigger upward price movements.
According to him, the prevailing market outlook remains relatively stable to bearish.
Gillis-Harry expressed concern that, in some instances, the landing cost of imported petroleum products appeared to be lower than the prices offered by domestic refiners.
This development, he said was surprising and underscored the need for a more competitive downstream petroleum market that guaranteed consumers access to the most affordable products available.
He, therefore, called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.
He explained that increased competition among suppliers would help moderate prices, discourage monopolistic tendencies and ensure a steady supply of petroleum products across the country.
The PETROAN President maintained that competition remains one of the most effective mechanisms for driving efficiency, reducing costs and protecting consumers.
He said a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities. (NAN)
