PETROAN Critiques FG's Petrol Price Cap as Legal Breach

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), led by National President Dr Billy Gillis-Harry, has criticized the federal government's directive for the Nigerian National Petroleum Company Limited (NNPCL) to reduce petrol pump prices. PETROAN argues that capping prices contradicts the Petroleum Industry Act (PIA), which abolished price controls in the downstream petroleum sector.

The federal government announced a 30-day plan last Thursday to lower petrol prices through a discount arrangement at NNPC-operated filling stations, as stated by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press conference in Abuja. This initiative, supported by President Bola Ahmed Tinubu, aims to provide temporary relief to households and transport operators facing high energy and living costs.

Under this plan, NNPC Retail will sell petrol at cost, foregoing its profit margin, while the government negotiates a ceiling of N1,350 per litre on the landing cost of petrol.