PETROAN Urges Refiners, Importers To Cut Fuel Prices As Crude Prices Decline

[00:00:00]Now, in other news, the Petroleum Products Retail Outlet Owners Association of Nigeria, PETROAN, has called on refiners, depot owners, and petroleum products importers to reflect the recent decline in international crude oil prices in their ex-depot and retail pump prices of petroleum products. The national president of PETROAN, Dr. Billy Gillis-Harry, stated that the recent drop in global crude oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the savings on lower crude costs to Nigerian consumers.

[00:00:38]Now, he emphasized that market realities should be reflected in both ex-depot and retail pump prices in interest of fairness, economic relief for the public.

[00:00:48]Now, recent developments in the global oil market indicates that crude oil prices are experiencing a downward trend. Well, joining me live from our Abuja studios is the president of the Petroleum Products Retail Outlet Owners Association of Nigeria, Dr. Billy Gillis-Harry. Thank you so much, Dr. Gillis-Harry. It's good to have you on the show today. Thank you for your time.

[00:01:15]>> Thank you so much, Mr. Tolu, and thank you TVC for having us.

[00:01:19]My name is Prince Billy Gillis-Harry, >> Mhm.

[00:01:23]>> uh honorary doctorate degree uh holder, and I would like to be addressed as Prince Billy Harry until I write my PhD exams.

[00:01:33]>> Well, interesting stuff there. Well, let's get to let's get to to to to business now. That is noted. Uh >> [laughter] >> yeah, let's let's get to talk. Uh we started seeing a decline in the price of crude, and for me, that seems to me like a very welcome development.

[00:01:52]Um but we are yet to see reflect at the pumps. First, before we go to reflecting at the pumps, I'd like you to react generally to what is playing out with regards to United States and Iran, where we are, what has happened again today, how well you think this ceasefire deal will last, and all of the surrounding issues.

[00:02:16]>> Well, in our press release, as you read earlier, we have called on all players in the industry, from importers to refiners, to do the best to reflect what is happening in the world.

[00:02:32]The President Trump and his team have given some very strong body language as to why the war in Iraq will stop and why the Strait of Hormuz will be open again for business. And I think there's quite a lot of reaction to that. In our own country, our own dear Dangote Refinery swiftly reduced price by over about 75 naira a liter. And that for us shows that there is a welcome and noble action that's always coming from our dear refiner. But even at that, you can see that the the prices, you know, of bringing in petroleum product by the importers had also shown that there is quite a good reason to expect, you know, that further um approvals of import licenses to more marketers and also the refinery doing their best.

[00:03:33]NNPC also working very hard to make sure that the four refineries that owned by the collective interest of Nigerians will be able to give Nigerians a better sequel because we depend on refined product for our energies and everything that we do. So, uh for us, it's a welcome idea that uh the war in Iraq will stop and uh business will certainly become uh much more beneficial. The insurers will look uh towards ensuring that uh high cost of vessels passing through the street will be reduced and this will certainly impact very positively on us.

[00:04:12]As of today, um they price changes has not reflected in all the uh retail outlet, but certainly it will it will reflect in no distant time.

[00:04:23]>> Exactly where I'm headed. We've had that argument, even in the newsroom, we've talked about it. It's always very quick for marketers to change prices when there is an increase, but when there is a reduction, then it now becomes, "Oh, we're yet to um exhaust our stock. Oh, no, we just got this stock yesterday. We just did this." How do we or how are we sure that um it's not a new stock? And how do we monitor all of this so that immediately this happens or maybe there should be a number of days, a number of hours we ought to wait and know that when we go to the four stations, we'll start to buy PMS at lesser price. Yes, Dangote put off 75 naira from ex-depot price, but some will tell you that looking at the drop in the price of crude, it should even be less than that.

[00:05:13]>> Well, um there are so many reasons why particular price regime will apply at any time.

[00:05:21]And I really don't think that uh it would be fair to expect that Dangote will reduce price by say 500 naira as I hear banter even in the social media.

[00:05:32]Um it's a business and if the business goes under because of capital loss, then we have we are we as a whole country will lose, not just Dangote. And that's one of the reasons why we support him and support the president uh Segun do Bala Ahmed Tinubu. Our very determined president to ensure that Nigeria's economic, you know, values increase and everywhere. This is why PETRON as an organization and other economic union leaders are coming together to ensure that the cloud gathers to favor President Bola Ahmed Tinubu to win the 2027 election because he's embracing technology, he's embracing new innovations, and he's encouraging businesses. Certainly, in no distant time, some of these policies will take place. And PETRON, one of the things we have done is to develop technology, which I believe that the president is very open to embrace on his team that will help us to be able to follow through with petroleum product distributed into every of our retail outlets. First, PETRON members, thereafter, others can also benefit from it. We are trying to automate our retail outlets and forecourts. So, that way we can be able to follow through with when stock came in, when stock went out. But, these are things that are ongoing and it will take a while.

[00:06:54]Nigerians should, please, give us some level of applause that we do our best.

[00:07:01]I'm talking about PETRON members.

[00:07:04]We do everything we can to make sure that our businesses have the face of a human being. Our hearts are not there to exploit. We want to make sure that Nigerians enjoy the best from everything. The moment Dangote changes price by 75 naira, our colleagues in DAPMAN and other depot owners reduce the price by 5 naira. I mean, by 60 something naira, which was a very welcome idea.

[00:07:32]From then on to the retail outlets of places, going to take a while. There are logistic issues, costs of capital to be able to, you know, assure that we have these products within our means and ability so we don't also run out of capital. The same arguments we make for the refiners is the same argument we make for the retail outlets.

[00:07:53]In every retail outlet, any loss of even two naira per liter is significant to reduce the ability to capitalize and make the station wet. Now, that is where Nigerians have to also understand that some of us who have the capacity will even take the new product with the old product they have and take an average and reduce their prices.

[00:08:19]So, we need to give kudos and applause to those retail outlets. Especially, I'm talking about Petron members who take their time to make sure that they follow the market and do what is needed. So, um right now, I believe that some of our members who bought product from uh these depots are already landed in their stations. So, hopefully, from tomorrow next tomorrow, we'll see reflection of those prices that are going to be prevalent across the country. But right now, we are still in the process of ensuring that products are being delivered to our retail outlets. So, just give us a little time, you'll see it reflect in the retail outlet space.

[00:08:56]>> Interesting stuff. That that that would be a a very a very good one. Now, my my next question will really would be that argument, of course, in some quarters again in recent times that in many cases landing cost of PMS, that's from imported PMS, seems sometimes lesser than in-country refining. Now, I I I really don't get how how we work this out. But what really is playing out with regards to that? Because we also saw a report yesterday from the NMDPRA stating that imports had kind of increased.

[00:09:33]They talked about our consumption from 3.7 million liters to about 5.9 million liters.

[00:09:38]What is happening around that space?

[00:09:40]Talking about import prices and of course other surrounding issues.

[00:09:48]>> Look, in petrol alone we have about 8,000 plus retail outlets.

[00:09:52]>> Mhm.

[00:09:53]>> At least over 2,000 retail outlets do business every day.

[00:09:57]Some will not do business as frequently as daily, but at least in the week they do business.

[00:10:06]So, if importers are bringing in product at a more affordable rate and we they are within our reach, obviously my members will opt to go and buy the product that's there.

[00:10:18]But we have also within our mindset agreed that we must encourage local refining and that's why we also buy from Dangote. But as you know, Dangote is selling product only to depot owners as of now. Um where we can maybe get um AGO, uh but at the end of the day, um so long as petrol members cannot get our product directly from Dangote and we still have to go through the depots which we don't disagree because there has to be a business model that takes from the refiners to um the logistics company um NATO principally and the maritime organizations that are doing these services and then to the depots uh that are owned by Memman and Dapman and sometimes petrol members and also other association members have depots.

[00:11:09]Now, from those depots we can easily take product to our retail outlets because it's good. So, we quite agree with that business model. So, when products come down, we will also be expecting that when the product gets to the depot we should be able to take our product. So, now if some of these marketers that are close to us are bringing their products cheaper, obviously we will look to that because our covenant with Nigerians is to give high-quality petroleum products, make sure that they are present petroleum products available, and whatever we are doing we must make sure that it's pocket-friendly for Nigerians.

[00:11:46]And that again is why we believe that we must support the president to come by 2027. So, that way we can have answers to funding.

[00:11:59]We have requested for a bank of energy for strictly retail outlet owners and vehicle vessels that should be able to be supplying us. So, that way we can assess funds at one single digit. That will help us also to keep reducing the price for Nigerians.

[00:12:18]Let it be said that Dangote must make business and be successful. And if you don't if it doesn't make profit, that business will not work. Profit is what we give the lifeblood to the refinery to continue to do what we're doing. We also what happened during this heavy crisis of the state of emergency. If Dangote refinery was not there producing for us, who who knows where we'd have been?

[00:12:43]So, we so we solidly support him, but we also always insist that there should be a space for everybody to play. That is how we can make Nigeria to be a better place economically.

[00:12:55]>> Getting a place or getting a level playing ground for everyone to play is where my next question will come from.

[00:13:02]How competitive is the downstream of Nigeria's oil and gas industry uh post PIA, considering all of the challenges we've seen in recent times?

[00:13:15]>> Well, post PIA, remember that industry leaders had gathered to be able to work a process where we can be able to evaluate what our state is on the particular day that will proceed uh the removal of subsidy.

[00:13:34]And we are very happy that the president made that pronouncement because without that political will, we may also not have been where we are. Because assuming we are paying subsidy in the period of this crisis, where will Nigeria be?

[00:13:50]So, that's why sometimes we also ask the question, what about if the president did not make those economic decisions?

[00:13:59]Yes, it's painful, it's worrisome, but a child is not born in a day and start walking.

[00:14:06]These policies, we believe, should have happened since 1979.

[00:14:10]But today, they are here. So, if they are here, we should be able to keep finding a way and cushion it.

[00:14:18]Post PIA, the industry ordinarily should be competitive.

[00:14:23]But remember that access to fund is one critical element that will ensure that uh competitiveness is effective. So, that is one area that we'll call on the president to pay attention to. And the honorable minister of uh finance and the chairman of the economic council, uh they should sit down and talk with us from the petroleum product retail outlet owners association space. So, we can also come with grassroots input of policy make policy ideas that can help in ensuring that we have access to funds that is not a waste, but will certainly grow the industry. Because we need that uh ingredient to be competitive.

[00:15:05]But we are here, and we are moving on.

[00:15:10]My appeal to Nigerians is, let's just be patient.

[00:15:13]Let us endure a little bit and put in our best effort to ensure that we support government to bring out the best policies. Yes, the government should be criticized. Government should be told exactly what is not right and we don't shy away from we don't shy away from that. But when we see the policies are designed to help us in the future, we embrace it and we work on it.

[00:15:37]And that is what even as an integral member of the Working People United for Nigeria, Petron plays a critical role in ensuring that we must give the policies that have been allocated and already been run, the end the the required support to ensure that we make Nigeria a greater place.

[00:15:56]>> Now, almost finally, Prince Billy Harry, now the issue of importing license is still on the floor.

[00:16:05]And you know, everyone is talking about it. It's it's a topical one.

[00:16:09]What is playing out because even the gas guys now regards to this gas issue, I hear that I think the authorities about to give licenses also for guys to import gas into the country. But my question really would be what's playing out with regards to import licenses for qualified marketers?

[00:16:29]Are they getting it?

[00:16:32]>> Well, as you know, every company that is qualified to import and there are obviously parameters by which NNPC and the Minister of Petroleum Petroleum, especially the Minister of State Senator Helen Boboy, a great man that's doing so much with support of the president in ensuring that everything that's been done in this country works.

[00:16:57]And when I look at what Minister Lupe Senator Lupe has done within this period of yes, seeing that been overseeing that that space, it's very very appreciative and want to thank God for him and encourage that he's given more support to do much more.

[00:17:15]Now, the issue of import license as you should know, is in the court.

[00:17:20]And I am completely incapable of making any inputs because so that I do not go against what the judiciary process will entail. So, obviously, Nigerians will win at the end of the day, and Nigerians will be the better.

[00:17:37]And we want to keep encouraging the president to keep his foot down and do what is correct and what is right because that is how this country will endure this process and will get into El Dorado.

[00:17:49]>> Mhm. Again, before I let you go, back to the issue of pricing, which Nigerians are so so so so interested in knowing what plays out with regards to that. So, what are you saying to us?

[00:18:01]When should we start to expect a change at the retail points?

[00:18:07]>> Uh well, >> [clears throat] >> from the data I have, some of our members already have started expecting products in their retail outlets.

[00:18:15]Hopefully, by close of day tomorrow, we should know which areas in the country, what zones, have gotten product from our our depot owners, where we're buying the products to come. And obviously, with us in petrol, we are very careful to encourage ourselves to do just what is right. If we bought product at a certain price, we do not want to take advantage I guess Nigerians. We want to make sure that they also receive the benefit of what Dangote refinery has done and what the importers have also done by giving us product at a more affordable price.

[00:18:50]So, let's hope that the next 3 days max will see changes in the in the retail outlet space in a very um wide area of Nigeria, not just only in the you know, right now there are price changes as you must know, but there are just little little ones. Very soon, it will be much more encompassing across the country.

[00:19:15]>> Well, it's a good way to leave it. Let's Prince Billy Gilly Harry is President Petroleum Products Retail Outlet Owners Association of Nigeria. Thank you for your time on Business Nigeria. We appreciate this.

[00:19:29]>> Thank you so much for having us.