The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has intensified its call for a N100 billion intervention fund from the Federal Government to stabilize the petroleum products market and mitigate the impact of fuel subsidy removal.
Dr. Billy Gillis-Harry, President of PETROAN, emphasized the critical need for government intervention during an appearance on Arise TV’s “This Morning Show.” He argued that the high cost of financing, currently estimated between 36 and 40 percent, is significantly impacting operational costs for retailers.
“The request for N100 billion intervention was requested because it is going to cushion the cost of money in our business. And that will make a long way to make petroleum products available and affordable to Nigerians,” Dr. Gillis-Harry stated.
He proposed that the intervention fund be integrated into the annual federal budget, highlighting its relatively small proportion compared to overall government expenditure.
High Financing Costs Impact Consumers
PETROAN contends that the current high financing costs are placing immense pressure on retailers, ultimately leading to increased pump prices for consumers. The association believes that the intervention fund will provide much-needed financial relief, enabling retailers to maintain a steady supply of petroleum products at more affordable prices.
Preventing Job Losses and Market Disruption
In an earlier released statement, PETROAN warned of potential job losses and business closures for 10,000 marketers due to the removal of the fuel subsidy. The association urged President Bola Tinubu to approve the N100 billion grant to mitigate these negative consequences.
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“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy,” the statement read. PETROAN believes that this intervention is crucial to consolidate gains made in the downstream sector.
PETROAN Acknowledges Government Efforts
Despite the challenges presented by subsidy removal, PETROAN acknowledges that 2024 has been a significant year for Nigeria’s oil and gas downstream sector. Key developments include deregulation, increased infrastructure investments, and growth in the LPG market. The association emphasizes the need for government support to ensure continued growth and development within the sector.
If You Ask Me
PETROAN’s call for a N100 billion intervention fund underscores the critical need for government support to stabilize the petroleum products market following the removal of the fuel subsidy. The association argues that this intervention is essential to mitigate the impact of rising operational costs, prevent job losses, and ensure the continued availability and affordability of petroleum products for Nigerian consumers.
