Harrison EDEH
THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is seeking 30 per cent fuel allocation for members for distribution in its retail outlets nationwide over 30-day discounted petroleum price by the Nigerian government.
The association has also applauded the federal government for introducing a 30-day petrol discount scheme to reduce transportation costs and ease the economic burden on Nigerians,noting that it’s extended networks across the country will help it reach the underserved in Nigeria’s rural clusters.
Recall,the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had announced the initiative on Thursday during a press briefing in Abuja, explaining that the scheme would cover petrol supplied by the Nigerian National Petroleum Company Limited (NNPC Ltd), with public transport operators identified as priority beneficiaries.
PETROAN, in a statement on Friday, October 9,signed by its Special Adviser, Media, Chris Odia and National PRO, Joseph Obele, said the intervention is coming at a critical period, noting that transportation costs have a direct impact on the prices of food, agricultural produce, manufactured goods and other essential commodities.
Accordingly, PETROAN appealed to the federal government to allocate 30 per cent of the total volume of discounted petrol through its retail network to guarantee wider national distribution and ensure that the benefits of the intervention reach Nigerians across Local Government Areas, towns, villages and hard-to-reach communities.
“PETROAN can state unequivocally that its retail outlets have a presence in some of the most remote and underserved locations across Nigeria, including communities where NNPC retail outlets are not available.
“This extensive grassroots network gives PETROAN a unique capacity to take petroleum products and government interventions beyond major cities and commercial centres to the people in rural communities,” the association said.
PETROAN further said that given its extensive grassroots presence and direct relationship with petroleum consumers, it is strategically positioned to champion and pilot the federal government’s Compressed Natural Gas (CNG) initiative across the country.
According to the association, leveraging its existing retail network for CNG deployment would accelerate accessibility, encourage adoption of cleaner and more affordable alternative fuel, and support the federal government’s broader energy-transition and economic objectives.
Commenting on the economic benefits, PETROAN said the policy could provide significant relief if properly implemented.
It noted that a reduction in the cost of petrol for public transport operators could translate into lower transportation fares, putting more disposable income in the hands of commuters and households, while also reducing the cost of moving agricultural produce from rural communities to urban markets.
The association noted that this could help moderate the prices of food and other essential commodities, particularly where transportation and logistics account for a significant portion of the final cost, and support small businesses, traders, farmers, manufacturers and other productive sectors that depend heavily on road transportation.
PETROAN also said that lower transportation costs could ease inflationary pressures by reducing the transportation component embedded in the prices of goods and services.
“If the savings are effectively transmitted across the supply chain, consumers could experience some relief from the current cost-of-living pressures.”
Speaking on the development, the National President of PETROAN, Billy Gillis-Harry, commended the federal government for recognising the strategic importance of transportation to the Nigerian economy.
Gillis-Harry said the intervention could produce benefits beyond the transport sector, explaining that when transport operators spend less on petrol, commuters could benefit from more affordable fares, traders could move goods at lower costs, farmers could access markets more efficiently, and businesses could reduce logistics expenses.
He, however, urged the federal government to ensure that the programme is implemented transparently and efficiently, with clear guidelines on the exact discount per litre, eligible beneficiaries, monitoring mechanisms and distribution channels.
He stressed that the success of the policy should not only be measured by the volume of petrol sold at a discount but also by its actual impact on transportation fares, food prices, business operating costs and household purchasing power.
PETROAN called on NNPC Ltd, transport operators, petroleum marketers, relevant government agencies and other stakeholders to cooperate fully to ensure that the intervention achieves its intended objectives.
The association also urged the federal government to carefully assess the outcome of the 30-day programme and consider further measures that could sustain the economic benefits if the intervention produces measurable reductions in transportation costs and inflationary pressures.
AdvocateTimes has earlier reported that the association has beckoned on the Nigerian government to ensure that government-owned refineries are resuscitated to improve competitive fair pricing in Nigeria’s oil and gas sector.
PETROAN regrets that the delays and inactivity of government-owned refineries is affecting industry players in the petroleum industry value- chain,adding that the domestic refining will improve competitive -fair pricing in petroleum downstream sector.
