Street protests over pump price changes will spell chaos- PETROAN

Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) has taken a position not to support the random call by pressure groups in the downstream sector of the oil and gas industry to embark on strike action to protest the federal government, incessant changes in the pump price of petrol.

The federal government, through the Petroleum Products Pricing Regulatory Agency (PPPRA), on July 1, 2020, raised the pump price of petrol to between N140.80 and N143.80 for July, in one of the highest price movement in the last few months.

In March this year, the government said that thenceforth the pump price of petrol will be determined by market forces, stating that how much Nigerians will get the product at a retail price will be largely determined by the international prices of crude oil.

The latest price change in the petroleum pump price by PPPRA has drawn various reactions from the downstream stakeholders in the oil and gas sector. Although, the agency insists that the monthly guiding prices would still allow reasonable returns to operators, many of the stakeholder operators like Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN), and the Nigerian Labour Congress (NLC) is dropping hints of a protest march

They complain that the effect of the usually, sudden price changes to their business are huge and devastating. However, while most of these oil sector pressure groups have made open threats, the PETROAN President, Dr Billy Gillis-Harry, said in an interview his association holds the opinion that only a round-table, stakeholders’ engagement between the various downstream group operators, the leadership of PPPRA, NNPC, the Department of Petroleum Resources (DPR), and the ministry of petroleum resources will solve the problem

“While we are not happy, we do not think any street protest or shutting down our outlets will solve any problem. The position PETROAN members occupy in the petroleum value chain is critical. So we need to thread with a lot of caution. Putting the whole retail space into confusion will induce more losses on us,” he said

He said it is sad enough that only the PPPRA has been saddled with the task of determining the pump price of petrol and other refined products in Nigeria, a task he says PPPRA should perform with extensive consultation with all stakeholders. “We all feel the same pain – I mean with our sister unions and associations, but we in PETROAN considers the option of dialogue to ensure that all inputs of stakeholders are properly collated to determine the price of products,” Dr Harry said

He stated that there should be a complete price review, but stressed that it should not be left only in the hands of the PPPRA. “That is our position,” Billy said, adding that that PPPRA should be preoccupied with the deregulation of the oil and gas sector.

According to the PETROAN president, the price variations from March till this July have not been consistent or followed any pattern. He, therefore, called on the National Assembly to enact a law that will cover the deregulation policy. “That is part of the problems we are complaining about. We in PETROAN verily support the pronounced deregulation by the Honourable Minister of State for Petroleum, Chief Timipre Sylva and all the leadership in the petroleum sector, in the belief that it is the best for us all in the sector, and as Nigerians. But I tell you this; we want this deregulation to be backed by law.

“What we have currently is a happenstance that came through a decree during the military regime. Now we have a National Assembly that can engage due process and legalize deregulation now,” Billy, who is also the Chief Executive Officer of Bilview Energy, said.