PETROAN SEEKS 30% OF FG’S DISCOUNTED PETROL SUPPLY FOR MEMBERS
Read Time:4 Minute, 4 Second
By Aishat Momoh. O.
The Petroleum Products Retail Outlets Owners Association of Nigeria has urged the Federal Government to allocate at least 30 per cent of its discounted petrol supply to its members, saying the move would improve nationwide distribution and make the price reduction more accessible to Nigerians.
The PETROAN President, Billy Gillis-Harry, made the appeal in an interview with Arise News, arguing that the association’s extensive retail network could complement the Nigerian National Petroleum Company Limited’s distribution efforts.
Gillis-Harry said the proposed allocation was a minimum and could be increased depending on the distribution arrangement agreed upon with the NNPC.
“The 30% 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.
He noted that the NNPC’s retail outlets might not be sufficient to distribute the product efficiently across the country, adding that PETROAN’s network could help extend the initiative to underserved communities.
According to him, allocating part of the discounted supply to independent retailers would enable more outlets to sell petrol at reduced prices while improving availability and easing queues at NNPC filling stations.
Gillis-Harry explained that independent retailers could not completely forgo their profit margins, unlike the NNPC, which he said was prepared to sacrifice part of its profit under the initiative.
“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 said.
He stressed that PETROAN was not asking the government or the NNPC to supply petrol to its members for free, but was proposing to purchase the discounted product and distribute it through its retail network.
“We will pay NNPC for the product; they don’t give us product for free. Our proposal is simply: if you have one billion litres to supply through this method, give us 30 per cent, which is 300 million litres, that we can extend to our members without making it much more expensive,” he stated.
The PETROAN president argued that distributing the discounted petrol through additional outlets would improve access, particularly in densely populated cities and communities with limited retail infrastructure.
He cited the possibility of extending distribution to an additional 1,000 or 2,000 stations in a city, saying the arrangement could improve efficiency and ensure more Nigerians benefited from the initiative.
“We understand the need and dynamics of servicing Nigerians with those two critical points: availability and affordability,” he said.
Gillis-Harry added that spreading the product across more outlets would reduce pressure on NNPC filling stations, where motorists could otherwise face long queues.
He said the association had presented its proposal to the government and was awaiting a response, expressing optimism that it would be approved.
Gillis-Harry also rejected suggestions that the discounted petrol initiative amounted to a return of fuel subsidy.
He argued that the arrangement differed from the former subsidy regime because, according to him, the NNPC would absorb the discount from its profit rather than rely on direct government payments to cover the difference between the landing cost and pump price.
He explained that the initiative involved the NNPC discounting the price of petrol by ₦16 from its profit, describing it as a commercial intervention rather than a return to the previous subsidy system.
“What we are saying as retail outlet owners is that we want to latch onto that so it becomes an extension of ensuring this policy filters down to all the nooks and crannies of Nigeria,” he said.
On the proposed ₦1,350-per-litre ceiling on petrol landing costs, the PETROAN president expressed reservations, warning that fixing a predetermined price could undermine the intended benefits if market prices declined.
He argued that a fixed ceiling might become counterproductive if petrol landing costs fell below the proposed threshold.
“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.
He questioned what would happen if the landing cost dropped to ₦1,250 per litre, insisting that the government should prioritise policies that support businesses and promote competition.
Gillis-Harry maintained that supporting independent retailers would help them sustain their operations while providing Nigerians with more affordable petroleum products.
He reiterated that PETROAN members would sell the discounted petrol at the same price as NNPC retail outlets if the proposal was approved.
“It will not be any different from what NNPC is doing, because all we are doing is being an extension,” he said, adding that the association was awaiting the Federal Government’s response.
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