Billy Gilly-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has warned Nigerians to brace for higher prices of Premium Motor Spirit (PMS) in the near future, stating that prices will align with current market rates.
Gilly-Harry made this announcement on Tuesday during an appearance on Channels Television’s Morning Brief.
He noted that the current price of petrol, approximately ₦600 per litre, may no longer be sustainable as the Nigerian National Petroleum Company Limited (NNPCL) struggles to maintain supply.
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His comments follow the NNPCL’s recent acknowledgment of a debt exceeding $60 billion to PMS suppliers. Due to scarcity, petrol is currently priced around ₦950 to over ₦1,000 per litre at stations not operated by the NNPCL.
”We have been shouting that they (NNPC) has been selling products at ₦590 per litre. Who is bleeding? Somebody is bleeding and we need to tell what exactly is going on, we cannot play politics with everything.
When asked whether Nigerians should prepare for a price hike, he said “For me, what I will say is to encourage Nigerians to buy petroleum products at the price that the market forces will determine. However, we are fully aware that fuel subsidies of different kinds of products across the world, and oil and gas are a natural blessing for Nigerians. And naturally, we are expecting a subsidy to be paid for that. And I will have to look at the advantages of subsidising just PMS when we have health challenges and other challenges.
He also spoke on the NNPCL debt to oil suppliers.
“It is a great effort by the NNPC to come out to say it is in debt. And this is what we have advised a very long time ago, that anything that needs to be done in this sector should be done transparently so that people don’t guess and get into panic.
“For us as retail outlet owners, it is a situation that has given us a concern to also look inwards and see what dialogues can bring.
“Three days ago now, there is information that we should look for other solutions out of the box.
“So it is going to be a tough one. NNPCL is the only one that has access to expendable amounts of dollars to import PMS or any other product at this time, because they have a ready market, and they also earn in dollars, given that our refineries are yet to come on stream.
“It definitely means that we have to think out of the box and become creative in certain ways that will help us to be able to serve Nigerians.
“For my members, we have suffered a great deal. You see our filling stations across the country, but there is no business. So it is a concern for all of us but we all can think out of the box and come out with a solution to the crisis.
“Recall that when the deregulation regime started in 2023, some members who had access to forex were also importing. And of course, the reason they stopped was because you cannot land products within the rate of $1 per litre, and try to sell it for 30/40n cents.
“So there could be business arrangements with refineries and owners of trading companies that could also come to the rescue.
“Nigerians are creative and I know a lot of Nigerians are already working. PETROAN is also putting together a couple of ideas that will aggregate funds, and see how that in itself can become a solution.
“So yes, NNPC has the capacity, and incidentally we are here and we hope that we can hurriedly walk this road and get out of it. Yes, I agree that when information is given, it should be brutally honest so that we know exactly where we stand. PETROAN and other sister organisations with bigger capacities are also doing the same thing.
“There are so many things that Nigerians can do exactly to get tradable dollars which we have left.”
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He advised Nigeria to increase its focus on exporting agricultural and pharmaceutical products to boost foreign currency inflow. He also called on governors to facilitate access to land for farmers.
Additionally, he mentioned that PETROAN is in discussions with trading companies on strategies to convert naira into products within Nigeria.
“But for that to work, we will still need a lot of approvals to get that done. Some of our members already have import licences which have been dormant due to foreign exchange challenges.
He said he was unable to comment on the current petrol stock available in the country and for how long it would last.
“NMDPRA is saddled with such responsibility and should be able to clarify to Nigerians what stock we have. But I am aware that there is a possibility that on Saturday, NNPC will supply products to us for distribution across the country. That is why we keep encouraging NNPC to do more.
“To my knowledge, it is not like they are sitting with their arms crossed. All we say is that let the solution be faster to lessen the suffering of Nigerians.”
He attributed the current high prices of petrol to the distance NNPC has to cover to bring the products into the country.
On why the prices of petrol are currently high, he said “You are trying to buy water, and you ask the water merchant to supply you. But the supplier has to walk miles to get the water to you. The price of water you get nearby will be different from the one you get far away. The answer is no. That is what is happening. The cost of bringing in products today is much because of the distance.
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