PETROAN Clarifies Why Petrol Prices Haven’t Dropped at Filling Stations
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has shed light on why recent cuts in petrol prices at the depot level by the Dangote Refinery have not yet been fully reflected at filling stations nationwide.
In a television interview on Wednesday, June 17, 2026, PETROAN President, Billy Gillis-Harry, explained that pump prices are determined by multiple factors such as product availability, purchase costs and distribution logistics.
He noted that a reduction in depot prices does not immediately lead to lower retail prices.
He pointed out that while price increases are often quickly passed on to consumers, reductions usually take longer because marketers must first recover the cost of existing stock bought at higher prices.
According to him, operators also need adequate margins to restock and maintain their operations.
Gillis-Harry added that marketers typically have to sell off or significantly reduce previously purchased inventory before adjusting prices downward.
He also highlighted additional costs in the sector, including blending, handling and operational losses, which influence final pump prices.
Energy analyst Olabode Sowunmi, who also spoke during the programme, noted that petrol pricing in Nigeria is not driven solely by global crude oil prices.
He explained that local supply dynamics, particularly involving the Dangote Refinery, have lessened the direct impact of international market trends on domestic pricing.
Sowunmi emphasised that the main issue lies within the supply chain, stating that transportation, storage and distribution costs play a bigger role in determining pump prices than global geopolitical factors.
He further observed that the behavior of marketers can affect how quickly price reductions reach consumers, stressing that their decisions are crucial in determining the pace of price adjustments.
This clarification comes weeks after Dangote Refinery reduced its ex-depot prices for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). Petrol prices were lowered from ₦1,275 to ₦1,250 per litre, while diesel dropped from ₦1,800 to ₦1,700 per litre.
The refinery said the price adjustment is part of efforts to make fuel more affordable, improve supply efficiency, and support economic activities by reducing costs associated with transportation, power generation and industrial operations across the country.
