The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, has called on the Federal Government to allocate at least 30 per cent of its discounted petrol supply to the association’s members to improve nationwide distribution and ensure more Nigerians benefit from the price reduction.
Speaking in an interview on Arise News following the Federal Government’s discounted petrol initiative, Gillis-Harry said PETROAN’s extensive retail network would complement NNPC’s efforts, improve distribution efficiency and make the product more accessible to Nigerians.
“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. 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. PETROAN has larger retail volume, which also includes NNPC retail outlets among our members.
“We see the government’s intervention as something that could help Nigerians as fast as possible, with us playing that role to deepen distribution channels faster and more efficiently. 30% could be more or less depending on what NNPC looks at, but we have made that appeal and presentation showing the value of what that can do to make the policy efficient.”
Gillis-Harry acknowledged that PETROAN members could not afford to forgo their profit margins entirely, unlike NNPC, which he said was prepared to sacrifice its margins under the initiative. He explained that access to discounted petrol would enable members to sell at lower prices while retaining a reasonable margin to cover operating expenses and remain in business.
“We don’t have the deep pockets of NNPC to forego 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.”
Reiterating the need for wider distribution, Gillis-Harry said PETROAN’s members would pay NNPC for the discounted petrol and distribute it through their outlets nationwide, arguing that the arrangement would improve availability, ease queues and help keep prices affordable without requiring members to forgo their profit margins entirely.
“We’d just be an extension of NNPC’s efforts—just doing what NNPC is doing. That way, we are able to carry this same product down to the nooks and crannies of Nigeria. That is more important than having 15 stations in a city serving a population of about 3 million people. If you have an additional 1,000 or 2,000 stations in that city, distribution efficiency will be higher, and Nigerians will benefit more.
“We are not going to lose our profits; we will work out the dynamics. We will pay NNPC for the product; they don’t give us product for free. Our proposal is simply: 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.”
Maintaining that the proposal would support rather than undermine the government’s intervention, Gillis-Harry said PETROAN was engaging with the government and expected approval, arguing that involving its members would improve distribution efficiency and help more Nigerians access discounted petrol.
“We understand the need and dynamics of servicing Nigerians with those two critical points: availability and affordability. This will not be any different. If we buy from other sources, we will sell at a higher price, causing NNPC retail outlets to be massively impacted by queues. If that product is spread around to different outlets, it enhances the purpose.
“We are only extending NNPC’s efficiency. We are certainly speaking to the government, and we expect that government will say yes because it helps in ensuring the policy works.”
On the proposed ₦1,350 per litre ceiling on petrol landing costs, Gillis-Harry expressed reservations, arguing that pre-determining landing costs could undermine the government’s discounted petrol intervention, particularly if market prices fall below the proposed threshold.
He urged the government to prioritise support for businesses to ensure consistent product availability and affordable energy for Nigerians.
“Our reaction is that it will be difficult to pre-determine what the landing cost will be. The moment we start working towards that, it takes us away from this intervention, which is supposed to just be a discount. Once the government starts saying petrol must land at ₦1,350, what happens if the price comes down to ₦1,250?
“We do not think that is a better policy. At the end of the day, we need the government to ensure there is support for business. If business is supported and the stations are wet, they do business to encourage Nigerians, because every day PMS, diesel, and gas are used. It is our retail outlets that provide these services.”
Rejecting claims that the discounted petrol initiative amounts to a return of fuel subsidy, Gillis-Harry said the policy involves NNPC sacrificing ₦16 from its profit per litre rather than the government absorbing the difference between landing costs and pump prices. He maintained that PETROAN’s interest was to extend the initiative’s reach by distributing discounted petrol through its members’ outlets nationwide.
“No, I do not agree that subsidy is returning. When we say PMS is subsidized, it means landing cost—just as an example—is ₦1,350 and the government takes the shock of ₦700. That is a subsidy. In this case, the policy is simply: NNPC, out of your profit, ₦16 should be discounted. NNPC is going to buy the product from a source, either through local refineries or imports.
“What we are saying as retail outlet owners is that we want to latch onto that so it becomes an extension of ensuring this policy filters down to all the nooks and crannies of Nigeria.”
Gillis-Harry said PETROAN members would sell the discounted petrol at the same price offered by NNPC retail outlets if the association’s proposal is approved, adding that the association is awaiting the Federal Government’s response.
“It will not be any different from what NNPC is doing, because all we are doing is being an extension.”
Gillis-Harry said PETROAN was awaiting the Federal Government’s response to its proposal for at least 30 per cent of the discounted petrol supply, expressing hope that the request would be approved to enable the association to extend the initiative’s reach nationwide.
“Yes, we are waiting, and hopefully they will respond.”
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