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PETROAN Demands 30% Share of FG’s Discounted Petrol for Wider Reach


The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to allocate at least 30 percent of its discounted petrol supply to the association’s members. 


The group argues this would expand nationwide distribution and ensure more Nigerians benefit from the lower prices.


PETROAN President Billy Gillis-Harry made the appeal in an interview with Arise News after the government launched its discounted petrol initiative through the Nigerian National Petroleum Company Limited (NNPC).


He said the association’s large network of retail outlets could support NNPC’s efforts and speed up availability across the country.


“The 30% we mentioned is actually a minimum, because we could do more depending on the dynamics NNPC sees on how we can work together,” Gillis-Harry stated. 


“The fact is that we have over 230 million Nigerians dependent on this energy to run their daily economy. The number of NNPC retail outlets, as good as they are, may not be able to do the entire work in an efficient and expeditious manner.”


He noted that PETROAN’s network is larger and already includes some NNPC retail outlets among its members. 


The association views the government’s move as an opportunity to deepen distribution channels quickly andGillis-Harry explained that access to the discounted product would allow independent outlets to sell at lower prices while still covering their operating costs and keeping a reasonable profit. 


Unlike NNPC, which can forgo part of its margin, PETROAN members lack the same financial depth.


“We don’t have the deep pockets of NNPC to forgo profits. The reason is simple: if we have the product already well-discounted landing at our outlets, we can sell at a much cheaper price than if we buy from other sources,” he said.


The association would purchase the petrol from NNPC and sell it through members’ stations—not receive it free of charge. Gillis-Harry described the proposal as simply extending NNPC’s reach.


“If you have 1 billion liters to supply through this method, give us 30% (300 million liters), which we can extend to our members without making it much more expensive,” he said. 


Adding thousands more stations, he argued, would improve distribution efficiency far beyond what a limited number of NNPC outlets can achieve in major cities.


Spreading the discounted fuel more widely could also reduce long queues at NNPC stations and better serve both availability and affordability.


Gillis-Harry rejected claims that the discount scheme amounts to a return of fuel subsidy. He said true subsidy occurs when the government covers the gap between landing cost and pump price. 


In this case, NNPC is simply sacrificing part of its own profit margin.On suggestions of a fixed ₦1,350-per-litre landing-cost ceiling, he expressed caution, warning that locking in a predetermined price could complicate the discount if market rates fall lower.


PETROAN is awaiting the Federal Government’s response. If approved, Gillis-Harry said members would sell the product at the same discounted price as NNPC stations, acting purely as an extension of the policy. 

  

 

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