KEY POINTS
- PETROAN has urged the Federal Government to provide palliatives for Nigerians as rising crude oil prices increase government revenue.
- The association supports fuel price deregulation but recommends targeted relief, especially in the transportation sector.
- PETROAN also called for large-scale expansion of CNG infrastructure and proposed using retail outlets as CNG and EV charging stations nationwide.
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has called on the Federal Government to provide relief measures for citizens following the recent rise in global crude oil prices.
The President of the association, Billy Gillis-Harry, made the call during an interview, noting that Nigeria is expected to earn more revenue as global oil prices surge due to geopolitical tensions in the Middle East.
According to him, since the country is benefiting financially from the increase in crude oil prices, part of the additional revenue should be used to cushion the economic hardship faced by Nigerians.
Recent developments in the global oil market have pushed the price of Brent crude to around 100 dollars per barrel, significantly higher than Nigeria’s 2026 budget benchmark of 64.85 dollars per barrel.
Analysts say the surge in crude prices could lead to higher government revenues from oil exports. However, the development has also contributed to rising fuel costs in the domestic market, placing additional pressure on consumers.
PETROAN noted that instead of returning to fuel price regulation, the government should consider introducing targeted palliatives, particularly in the transportation sector, to reduce the burden on citizens.
Association backs deregulation of petrol pricing
The association also expressed support for the government’s policy of deregulating the downstream oil sector.
Gillis-Harry said the deregulation policy has already been established through legislation and reversing it would require new legal processes involving the National Assembly. He added that the earlier subsidy regime placed an unsustainable financial burden on the country, as Nigeria had to borrow large sums of money to maintain fuel subsidies.
He therefore supported the government’s position that fuel prices should continue to be determined by market forces rather than direct government control.
PETROAN also urged the government to accelerate efforts to expand the adoption of compressed natural gas as an alternative fuel for vehicles.
The association welcomed the decision of President Bola Ahmed Tinubu to deploy 100,000 compressed natural gas conversion kits across the country. However, it stressed that the initiative should not be treated as a one-off intervention.
According to the association, Nigeria has more than 17 million vehicles, with over 40 percent used for commercial transportation. It recommended that operators in the commercial transport sector should be prioritised as beneficiaries of the conversion programme.
