PETROAN ADVOCATES TRANSPORT SUBSIDY TO EASE RISING FUEL COSTS
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By:Tajudeen Aminat
The national president of the petroleum products retail outlets owners association of nigeria, billy gillis-harry, has proposed measures to mitigate the effects of rising crude oil prices fueled by the ongoing conflict in the middle east, according to channels.
global oil prices rose again on tuesday, with brent crude climbing above $100 per barrel, a day after dropping more than 10 percent following remarks by donald trump about delaying new strikes on iran while praising “very good” talks with tehran.
brent crude increased by 2.9 percent to $102.84 per barrel, while west texas intermediate rose by 3.5 percent to $91.20.
trump’s comments had earlier caused a sharp shift in the oil market, with prices falling by as much as 14 percent after initially gaining about one percent on monday. iran, however, denied holding any talks with trump.
In nigeria, the effects of global market fluctuations are already being felt.
the dangote petroleum refinery recently announced a new increase in the price of premium motor spirit, raising it from n1,175 to n1,245 per litre.
in a notice issued to marketers, the refinery stated that its ex-depot price was adjusted from n1,175 to n1,245 per litre, while the coastal price rose from n1,512,648 to n1,606,518 per metric tonne.
The refinery explained that the price adjustment reflects current global market conditions, including fluctuations in crude oil prices and rising shipping costs, which are beyond its control.
meanwhile, the president of the dangote group, aliko dangote, met with bola ahmed tinubu on monday to discuss the effects of the unstable global oil market.
speaking after the meeting in lagos, dangote noted that nigeria would inevitably feel the impact of the crisis despite not being directly involved.
“it means quite a lot. we don’t have much to do with it, but i know the world is a global village. and it will definitely affect us, unfortunately, but we hope the situation will be resolved,” he said.
dangote warned that a prolonged conflict could further strain economies, especially in africa, where many countries are already burdened with debt.
“if it doesn’t ease, we’ll end up paying high costs, as i mentioned earlier on cnn. africa is already heavily burdened with debt, and adding this will create more hardship for people, governments, and everyone, despite our lack of involvement,” he said.
he stressed that energy prices affect nearly every sector of the economy and that sustained increases could have widespread consequences.
Similarly, the executive director of the international energy agency, fatih birol, warned that the crisis could present a significant risk to the global economy.
speaking at the national press club in australia’s capital, birol likened the situation to past global energy shocks.
“this crisis, as it stands, combines two oil crises and one gas crash,” birol said.
“the global economy is facing a serious threat today, and i sincerely hope this issue will be resolved as quickly as possible.
“no country will be spared from the effects of this crisis if it continues in this direction, which is why global cooperation is necessary.”
following dangote’s meeting with tinubu, gillis-harry, speaking on the morning brief on channels television on tuesday, outlined several steps that could help reduce the impact of rising oil prices.
“the meeting between dangote and the president is very appropriate, and if i had the chance to meet the president, i would discuss the kind of support measures the government can introduce to cushion the effects of rising oil prices,” he said.
“In this situation, he is finally offering a solution, and that is why we are grateful that the dangote refinery stands as a strong structure at this time.
“what we should focus on now is finding solutions, not lamenting the effects of the war.
“one of those solutions is to fully explore our gas alternatives, because we already have gas, so there is no need to import it. what we need to do is ensure we harness and invest adequately in it.
“if we have enough cng gas stations and introduce electric vehicles, these measures will help reduce the impact of the crisis.
“however, in the meantime, i would suggest some form of subsidy to help reduce transportation costs, especially for commercial transport operators.
“for us in petroan, profit margins remain very low at the moment.
“The selling price at the pump does not reflect our actual profit, as we remain focused on ensuring product availability at our stations and being able to purchase and distribute products efficiently.”
he also rejected claims that marketers are exploiting Nigerians amid the recent increase in petrol prices, stressing that petroan is already collaborating with the government to expand gas infrastructure across the country.
“we are not taking advantage of the situation. in fact, we have proposed a crowd-buying approach to ensure products are distributed to as many outlets as possible.
“if i had the chance to meet the president, these are the issues i would raise. we need widespread gas stations nationwide, and we are ready to partner with the government and the pcng.
“we are already engaging with them on how petroan can play a major role in advancing gas penetration across the country. in my view, the government is not idle, and i believe the president is committed to addressing the challenges facing nigerians, although i cannot speak on their behalf.
“as marketers, we are doing our best to ensure products are available at our retail outlets—whether sourcing directly or through others who have purchased from dangote. we strive to keep our stations supplied, and we are grateful to dangote for making this possible, as without his refinery, the situation would have been much worse,” he said.
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