The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has explained its appeal for a N100 billion intervention fund to help stabilise the petroleum products market. This fund, the association says, would make fuel more affordable and accessible to Nigerians.
Speaking on Arise TV’s This Morning Show on Monday, qhighlighted the challenges faced by fuel retailers. He stated that the high cost of doing business in the sector is making it harder to keep fuel prices reasonable for consumers.
The Reason for the Request
Dr. Gillis-Harry emphasised that the intervention fund would ease the financial strain on fuel marketers.
“The N100 billion we’re requesting will help reduce the cost of borrowing for our business operations,” he explained. “This will go a long way in making petroleum products available and affordable to Nigerians.”
He suggested that the fund could be included in the federal government’s budget. “Every year, the government sets a budget, and this N100 billion is just a small fraction of it. It will significantly help us manage costs, especially with interest rates currently as high as 36 to 40 percent,” he added.
The Impact of Rising Costs
The PETROAN President pointed out that the high cost of borrowing money is putting enormous pressure on fuel retailers. This, in turn, is reflected in the prices consumers pay at fuel stations.
He argued that the intervention fund would provide much-needed financial relief, ensuring a steady supply of petroleum products at more affordable prices.
“We’re urging the federal government to prioritise this request,” Dr. Gillis-Harry said. “If approved, it will help Nigerians access fuel at fairer prices while stabilising the market.”
A Plea to Prevent Business Closures
Over the weekend, PETROAN issued a statement urging President Bola Ahmed Tinubu to approve the grant. The association warned that without this support, over 10,000 fuel marketers could face closure, leading to widespread job losses.
The statement read:
“Our request for N100 billion is a response to the potential closure of 10,000 businesses caused by the removal of the petrol subsidy. This intervention will help consolidate the gains in the downstream sector.”
The Way Forward
Despite the challenges, PETROAN expressed optimism about the future of Nigeria’s downstream oil sector. According to the group, 2024 marked significant milestones, including deregulation, infrastructure development, and growth in the LPG (liquefied petroleum gas) market.
“We believe that with the right support, the downstream sector will continue to grow and contribute positively to Nigeria’s economy,” the statement concluded.
