The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, has proposed measures to cushion the impact of rising crude oil prices driven by the ongoing conflict in the Middle East, Channels reports.
Global oil prices climbed again on Tuesday as Brent crude oil rose above $100 per barrel, a day after plunging more than 10 per cent following comments by Donald Trump about delaying fresh strikes on Iran while praising “very good” talks with Tehran.
Brent crude rose 2.9 per cent to $102.84 per barrel, while West Texas Intermediate increased by 3.5 per cent to $91.20.
Trump’s remarks had earlier triggered a dramatic reversal in oil markets, with crude prices falling by as much as 14 per cent after initially rising by about one per cent on Monday. Iran, however, denied having any discussions with Trump.
In Nigeria, the impact of global market movements is already being felt.
The Dangote Petroleum Refinery recently announced a fresh increase in the price of Premium Motor Spirit from N1,175 to N1,245 per litre.
A notice issued to marketers by the refinery stated that its ex-depot price had been adjusted from N1,175 to N1,245 per litre, while the coastal price rose from N1,512,648 to N1,606,518 per metric tonne.
The refinery explained that the adjustment reflects prevailing global market conditions, including changes in crude oil prices and rising shipping costs, which are outside its control.
Meanwhile, the President of the Dangote Group, Aliko Dangote, met with Bola Ahmed Tinubu on Monday to discuss the implications of the volatile global oil market.
Speaking after the meeting in Lagos, Dangote said Nigeria would inevitably feel the effects of the crisis despite not being directly involved in the conflict.
“It means quite a lot. We don’t have much to do with it, but I know the world is a global village. And it definitely will affect us, unfortunately, but we pray this situation will be sorted out,” he said after his visit to President Bola Tinubu in Lagos on Monday.
Dangote warned that a prolonged conflict could further strain economies, particularly in Africa, where many countries already face debt challenges.
“If it doesn’t de-escalate, we’ll end up paying big prices, like what I said earlier on CNN. Africa is very busy paying debt, and putting this again on top of us is going to add a lot of hardship on people, on the government, on the people, on everybody, for something that we have no involvement in.”
He emphasised that energy prices influence virtually every sector of the economy and sustained increases could have far-reaching consequences.
Similarly, the Executive Director of the International Energy Agency, Fatih Birol, warned that the crisis could pose a major risk to the global economy.
Speaking at the National Press Club in Australia’s capital, Birol compared the situation to previous global energy shocks.
“This crisis, as things stand, is now two oil crises and one gas crash put all together,” Birol said.
“The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible.
“No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts.”
Following Dangote’s meeting with Tinubu, Gillis-Harry, while speaking on The Morning Brief on Channels Television on Tuesday, outlined several measures that could help mitigate the effects of rising oil prices.
“The meeting between Dangote and the president is on point, and if I had an opportunity to meet with the President, I believe I would be talking about those palliatives the government can put in place to cushion the effects of soaring oil prices.
“In this case, he is finally proffering the solution, which is why we are thankful that Dangote Refinery is a very strong structure at this time.
“What we should be looking at today should be solutions and not to cry on the shoulders of this war.
“One of those things will be a total pursuit of one of our gas alternatives, because we have gas, so it’s not like we are going to import gas from anywhere. What you and I are going to do is to make sure we have gas, and make sure we have enough investments.
“If we have enough gas stations on CNGs, introduce EVs, those will definitely help cushion the effects of the war.
“But in the interim, what I will suggest is that, could there be some sort of subsidy to cushion the effects of transportation costs for transport owners, especially commercial transport owners.
“For us in PETROAN, the profit margins are still very meagre at this time.
“The size of what we sell at the pump does not translate to the profit margins we make, because we are still very mindful that we need products in our stations, and we should be able to buy our products and be able to carry them around as fast as possible.”
He also dismissed suggestions that marketers were exploiting Nigerians following the rise in petrol prices, adding that PETROAN is already working with the government to support the expansion of gas infrastructure nationwide.
“We are not taking undue advantage of the situation. We have even come out with the idea of crowd-buying to get as many products as possible to as many outlets.
“So, if I had the opportunity to meet with the president, those are the things I would discuss. We need to have massive gas stations across the country, and we are willing to partner with the government, with the PCNG.
“We are already in talks with them on how PETROAN can be deeply involved in gas penetration across the country. In my opinion, I don’t think the government is folding its hands. I am certain the President is very keen on solving the challenges facing Nigerians. But I can’t speak for the government.
“We marketers are already doing our best in making sure products are available at our retail outlets. Whether we are buying from those who have bought from Dangote and reselling to us, or we buy directly, we make sure our stations are wet, and we are grateful to Dangote for making this possible, because without Dangote, we don’t know what we would have done at this time,” he said.
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