Rising Energy Prices: Petrol Retailers Seek FG’s Temporary Intervention

• Demand transportation relief, naira-for-crude optimisation, others

Emmanuel Addeh in Abuja

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) yesterday urged the federal government to implement immediate but temporary intervention measures to protect citizens and businesses from the compounding effects of rising petroleum prices.

In recent weeks, the steady escalation in pump prices has placed significant financial pressure on citizens, businesses, and the national economy.

According to the National President of PETROAN, Dr. Billy Gillis-Harry, these costs have triggered a ripple effect, manifesting in inflated transportation fares, rising prices for essential goods, and a significant decline in household purchasing power.

In a statement signed by PETROAN spokesman, Dr. Joseph Obele, PETROAN said it recognised the impact of global market dynamics on domestic pricing, but emphasised that without pragmatic and timely interventions, the economic burden on households and small-scale enterprises will continue to stifle productivity and threaten broader economic stability.

To address these challenges, PETROAN recommended some short-term measures, including transportation relief; Naira-for-crude policy optimisation; refinery optimisation; food security support and alternative energy adoption.

It said: (The government should) implement immediate measures to offset transportation costs and alleviate the direct impact of high fuel prices on the populace. Strategically bolster the supply framework of the Naira-for-Crude initiative to enhance local refining capacity and stabilize domestic pricing.

“Issue an urgent directive to the NNPC to restore and sustain full operations at the Port Harcourt Refinery to break monopolistic constraints and improve domestic supply security.  Introduce temporary initiatives to mitigate the surge in food prices and provide relief to vulnerable households and accelerate the promotion and integration of alternative energy sources.

“Specifically this should be Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)to offer more affordable and sustainable fuel alternatives for transportation and domestic use.”

Furthermore, PETROAN called for sustained, high-level engagement among oil and gas stakeholders to formulate long-term solutions that guarantee energy security, price stability, and a resilient supply chain.

“PETROAN remains committed to collaborating with the Federal Government of Nigeria and all industry partners to ensure the efficient distribution of products nationwide. While we acknowledge the government’s ongoing sector reforms, we appeal for decisive action to alleviate current hardships and safeguard the economic welfare of all Nigerians,” the organisation stated.

The impact of the Middle East crisis, particularly tensions involving Iran, Israel, and disruptions around key energy hubs like Strait of Hormuz, has had a direct impact on fuel prices in Nigeria, even though Nigeria is an oil producer.

In the downstream, the country is heavily exposed because it relies significantly on refined fuel imports, even with output from the 650,000 bpd Dangote Refinery beginning to ease that dependence.