PETROL PRICE HIKE LIKELY DUE TO NNPC’S LIMITED CAPACITY TO ABSORB MARKET SHOCKS – PETROAN
The President of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harris, has attributed the recent hike in petrol prices to the Nigerian National Petroleum Company Limited’s (NNPCL) reduced ability to manage market shocks.
Gillis-Harris explained that NNPCL, which plays a key role in fuel distribution across Nigeria, may have reached its limit in absorbing costs related to fuel importation and distribution.
“What I can tell you is, once there is difficulty in landing products by NNPCL and the size of shock absorbing that they (NNPCL) can do becomes overwhelming, they will certainly shed some of the loads,” he said, referring to the NNPC’s efforts to shield Nigerians from fluctuating global oil prices. “I think that’s what would have happened.”
His remarks shed light on the dynamics that may have driven the recent spike in fuel prices, despite growing public outcry for government intervention. With global oil markets facing volatility due to factors such as the crisis in the Middle East and the rising costs of energy worldwide, Nigeria’s petroleum sector is grappling with increased pressures.
Gillis-Harris indicated that while the NNPCL had managed to keep fuel prices stable for some time following the removal of the subsidy regime earlier this year, the current situation appears to have surpassed its ability to continue cushioning the impact for Nigerian consumers.
The PETROAN president’s comments come amid growing concerns about the sustainability of Nigeria’s fuel supply system, particularly as citizens face increasing fuel costs that have further strained household budgets. Many industry analysts agree that without the subsidy, the burden of global price changes will directly affect Nigerian consumers, and recent developments reflect the realities of operating in a deregulated market.
Gillis-Harris encouraged further dialogue on how to stabilize the situation and called for more efficient measures to manage Nigeria’s energy sector. He also suggested that NNPCL and other stakeholders could explore alternative strategies to alleviate the burden on consumers in the long term.
As Nigerians continue to grapple with the effects of rising fuel prices, the need for more robust solutions to manage market fluctuations and ensure affordable access to energy remains a pressing concern.
Peoplesmind