Oil
Petroan proposes distribution partnership for discounted fuel
The Petroleum Products Retail Outlets Owners Association of Nigeria has asked government to approve a collaboration with NNPC to distribute discounted petrol.
Key points
- Petroan wants to distribute 30 per cent of discounted petrol to reduce queues.
- The association cites its network of over 9,000 outlets compared to NNPCL's 900 stations.
- Discussions involve finding a pricing structure that covers member costs and yields a modest profit.
What happened
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged federal authorities to greenlight a joint arrangement with the Nigerian National Petroleum Company Limited (NNPC). According to the Nigerian Tribune, the proposed scheme would see independent stations help distribute discounted petrol to the public.
NNPC currently offers a reduction of N66 per litre for customers utilizing its digital fuel application, placing the price at N1,339 per litre, spokesperson Andy Odey noted.
Why it matters
PETROAN President Dr Billy Gillis-Harry stated during an Abuja radio interview that long queues persist at pump stations because NNPC's retail footprint is too small to serve the entire country adequately.
While state-backed outlets number around 900 nationwide, PETROAN controls a network exceeding 9,000 stations. The association has offered to handle 30 per cent of the subsidised product volume under official guidelines to improve nationwide reach.
What comes next
For the arrangement to proceed, Gillis-Harry emphasised that a workable economic framework must be established. Participating retailers require a pricing model that covers operational expenses and maintains modest margins while matching the official discount price.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
