The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the Federal Government to allocate at least 30 per cent of its discounted petrol supply to independent filling stations, saying the move would improve fuel availability and affordability nationwide.
The association’s National President, Billy Gillis-Harry, made the request in an interview with Arise News, arguing that distributing the product through more retail outlets would complement the efforts of the Nigerian National Petroleum Company Limited (NNPC).
Gillis-Harry said PETROAN’s extensive network of filling stations could help extend the benefits of the discount initiative to more Nigerians, particularly in areas with limited access to NNPC outlets.
He explained that the proposed allocation was a minimum, adding that the association could handle a larger share depending on the arrangement agreed with the NNPC.
“The 30 per cent we mentioned is actually a minimum, because we could do more depending on the dynamics NNPC sees on how we can work together,” he said.
The PETROAN president noted that the number of NNPC retail outlets might not be sufficient to serve the country’s large population efficiently without support from independent marketers.
He said the association’s members would purchase the discounted petrol from the NNPC and distribute it through their stations, stressing that the arrangement would not involve receiving the product for free.
Gillis-Harry added that independent marketers needed the discount to sell petrol at lower prices without completely sacrificing their profit margins.
“We don’t have the deep pockets of NNPC to forego profits. The reason is simple: if we have the product already well-discounted landing at our outlets, we can sell at a much cheaper price than if we buy from other sources,” he stated.
He argued that extending the initiative to more filling stations would help reduce queues at NNPC outlets and improve access to cheaper petrol, especially in densely populated areas.
According to him, the association could distribute 30 per cent of any volume supplied under the arrangement to its members while maintaining prices comparable to those at NNPC retail stations.
“If you have one billion litres to supply through this method, give us 30 per cent (300 million litres), which we can extend to our members without making it much more expensive,” he said.
Gillis-Harry also dismissed suggestions that the discounted petrol initiative amounted to a return of fuel subsidy.
He explained that the proposed discount would come from the NNPC sacrificing part of its profit rather than the government paying the difference between the cost of importing petrol and its pump price.
“When we say PMS is subsidised, it means landing cost—just as an example—is ₦1,350 and the government takes the shock of ₦700. That is a subsidy. In this case, the policy is simply: NNPC, out of your profit, ₦16 should be discounted,” he said.
On the proposed ₦1,350-per-litre ceiling for petrol landing costs, the PETROAN president expressed concern that fixing a predetermined rate could undermine the initiative if market prices dropped below that level.
He questioned the rationale for maintaining the proposed ceiling if petrol could be imported at a lower cost, arguing that the policy should remain focused on providing a discount.
“Our reaction is that it will be difficult to pre-determine what the landing cost will be. The moment we start working towards that, it takes us away from this intervention, which is supposed to just be a discount,” he said.
Gillis-Harry said PETROAN was awaiting the Federal Government’s response to its proposal, expressing optimism that the request would be approved.
He maintained that the association’s participation would support the NNPC’s distribution efforts and help ensure that more Nigerians benefit from the discounted petrol initiative.
