Petrol Discount Will Ease Transport, Food Costs, Says PETROAN

…Seeks 30% allocation to its members

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the federal government’s 30-day petrol discount scheme will help reduce transportation costs and ease the prices of food and other essential commodities.

The association also urged the federal government to allocate 30 per cent of the discounted petrol volume to its members to ensure wider distribution across the country.

The minister of finance and coordinating minister of the economy, Taiwo Oyedele, announced the initiative during a press briefing in Abuja.

He said the scheme would cover petrol supplied by the Nigerian National Petroleum Company Limited, with public transport operators identified as priority beneficiaries.

The national president of PETROAN, Dr Billy Gillis-Harry, while commending the federal government for recognising the strategic importance of transportation to the Nigerian economy. said the intervention was coming at a critical period for Nigerians.

Gillis-Harry said the intervention could produce benefits beyond the transport sector.

He explained that lower petrol costs for transport operators could help commuters, traders, farmers, manufacturers and other businesses.

He, however, urged the government, the NNPC, transport operators, petroleum marketers and relevant agencies to cooperate fully to ensure that the scheme achieved its objectives.

PETROAN also called on the federal government to assess the outcome of the 30-day programme and consider further measures to sustain its economic benefits.

It said additional interventions would be necessary if the scheme produced measurable reductions in transportation costs and inflationary pressures.

PETROAN said transportation costs had a direct impact on the prices of food, agricultural produce, manufactured goods and other essential commodities.

The association said a reduction in the cost of petrol for public transport operators could translate into lower fares and provide relief for commuters and households.

It said, “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.”

According to the association, lower transportation costs could also reduce the cost of moving agricultural produce from rural communities to urban markets.

PETROAN said this could help moderate the prices of food and other essential commodities, particularly in areas where transportation and logistics accounted for a significant portion of the final cost of goods.

It added that the policy could support small businesses, traders, farmers, manufacturers and other productive sectors that depended heavily on road transportation.

“Reduced logistics expenses could enable businesses to sustain operations, protect jobs and improve productivity,” the association said.

PETROAN further stated that the intervention could ease inflationary pressures by reducing the transportation component embedded in the prices of goods and services.

It said consumers could experience some relief from the current cost-of-living pressures if the savings were effectively transmitted across the supply chain.

The association, however, urged the federal government to implement the programme transparently and efficiently.

It called for clear guidelines on the exact discount per litre, eligible beneficiaries, monitoring mechanisms and distribution channels.

PETROAN said the success of the policy should not be measured only by the volume of petrol sold at a discount.

Rather, it said the government should assess the programme based on its actual impact on transportation fares, food prices, business operating costs and household purchasing power.

The association appealed to the Federal Government to allocate 30 per cent of the total volume of discounted petrol to PETROAN members.

It said such an allocation would facilitate wider national distribution and ensure that the benefits of the intervention reached Nigerians in urban and rural communities.

PETROAN stated that its retail outlets were spread across virtually all local government areas, communities and villages in Nigeria.

It said its network included some of the country’s most remote and underserved locations, including communities where NNPC retail outlets were not available.

“PETROAN can state unequivocally that its retail outlets have a presence in some of the most remote and underserved locations across Nigeria,” the association said.

It added that its grassroots network gave it the capacity to take petroleum products and government interventions beyond major cities and commercial centres.

“Consequently, PETROAN is requesting that 30 per cent of the total volume of discounted petrol be allocated 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,” it said.

The association also said its direct relationship with petroleum consumers positioned it to support and pilot the Federal Government’s compressed natural gas initiative across the country.

PETROAN said leveraging its existing retail network for CNG deployment would accelerate access to the alternative fuel and encourage its adoption.

It said the approach would be particularly useful in communities where access to alternative energy solutions remained limited.

“Given its extensive grassroots presence and direct relationship with petroleum consumers, PETROAN is strategically positioned to champion and pilot the federal government’s CNG initiative across the country,” the association said.

It added that the use of existing retail outlets could support the Federal Government’s broader energy-transition and economic objectives.

The association reiterated its commitment to supporting policies that promoted affordable petroleum products, lower logistics costs, economic stability, sustainable business activity and improved living standards for Nigerians.