From News Editor
Petroleum products retailers under the auspices of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) say they are in advanced discussions with four offshore refineries regarding the supply of petroleum products.
According to reports, if the negotiations go through, it would lead to the supply of cheaper petrol, diesel, aviation fuel and cooking gas.
The association’s president, Dr. Billy Gillis-Harry, who disclosed this in a recent telephone interview with Daily Sun, said that the government to also rehabilitate the Warri and Kaduna refineries to stabilise the distribution value chain.
It disclosed that the advanced discussions with four offshore refineries was with regard to the provision of 300,000 metric tons of Petrol, Diesel, Jet A1, and cooking gas to the Nigerian market by the first quarter of 2024.
This announcement comes in response to opposing views in certain circles suggesting that the retail pump price of petrol should be capped at N1,200 per litre.
PETROAN President highlighted that the recent rehabilitation of the Port Harcourt refinery could provide some relief to Nigerians.
The PETROAN President expressed the association’s intention to explore an alternative funding model to alleviate the burden on the already strained Nigerian forex market. He highlighted that the recent rehabilitation of the Port Harcourt refinery could provide some relief to Nigerians.
He, however, stated that the ultimate objective would have been to rehabilitate the Warri and Kaduna refineries to establish stability in the distribution value chain.
He underscored the challenging economic landscape, noting that fuel retailers barely manage to stay afloat, particularly those with daily sales below 5,000 to 10,000 litres.
He lamented the escalating generator diesel costs and other overhead expenses, significantly eroding profit margins. (Sun)
