The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned that many petrol stations could soon shut down. PETROAN warns that if prices remain artificially low, petrol stations might close without government intervention. This will happen unless the Federal Government either provides financial support or allows petrol to be sold at market-driven prices.
PETROAN President Billy Gillis-Harry said the current pump prices are artificially low. PETROAN warns that prices remaining this way could cause petrol stations to close, as they do not reflect the actual cost of importing, refining, and distributing petrol.
Artificially Low Prices Threaten Supply
Last week, petrol prices in Abuja fell to between ₦930 and ₦945 per litre, depending on the location.
Gillis-Harry said these prices are not guided by supply and demand and warned that they could soon bankrupt marketers if prices remain artificially low, thereby risking the closure of petrol stations.
“Many marketers will run out of money to buy more petrol. This could lead to fuel shortages,” he said.
Market Dependence on Dangote Refinery
Gillis-Harry also expressed concern over the market’s growing reliance on the Dangote Refinery. He said it threatens healthy competition and long-term fuel stability.
He stressed that petrol must be sold at a fair price that reflects real market conditions. If prices remain low and artificially controlled, PETROAN warns that petrol stations could eventually close, making this adjustment essential to ensure steady supply for Nigerians.
“The earlier Nigeria returns to fair and correct pricing, the better the fuel supply will be for everyone,” he added.
Impacts On Nigerians
If the pricing issue is not addressed, Nigerians may face new price hikes and fuel scarcity, further complicating daily life and transport costs.
Gillis-Harry said the situation has already led to complaints from consumers and urged swift government action to stabilize the market. PETROAN has made it clear that petrol stations might close, given prices remain out of touch with actual costs.