PETROAN Seeks 30% of FG's Discounted Petrol for Members

Reported by Ariajegbe Sylvia Esezobor 

The Petroleum Products Retail Outlets Owners Association of Nigeria has asked the Federal Government to allocate at least 30 per cent of its discounted petrol supply to its members, saying the move would improve nationwide distribution and make the price reduction accessible to more Nigerians. The association's president, Billy Gillis-Harry, made the appeal in an interview with Arise News following the Federal Government's discounted petrol initiative, arguing that PETROAN's extensive retail network could complement the Nigerian National Petroleum Company Limited's distribution efforts and improve the availability of petrol across the country.

"The 30% we mentioned is actually a minimum, because we could do more depending on the dynamics NNPC sees on how we can work together," Gillis-Harry said. "The fact is that we have over 230 million Nigerians dependent on this energy to run their daily economy. The number of NNPC retail outlets, as good as they are, may not be able to do the entire work in an efficient and expeditious manner. PETROAN has larger retail volume, which also includes NNPC retail outlets among our members." He said the government's intervention could help Nigerians as quickly as possible, with PETROAN playing the role of deepening distribution channels faster and more efficiently. "30% could be more or less depending on what NNPC looks at, but we have made that appeal and presentation showing the value of what that can do to make the policy efficient."

The request followed the Federal Government's announcement of a 30-day petrol discount scheme on October 8, 2026. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced that NNPC Limited would offer a discount on petrol dispensed at its filling stations for an initial 30-day period, with priority for public transporters nationwide. Oyedele was emphatic that the arrangement did not constitute a return to the subsidy regime removed in May 2023, saying the government was simply selling at cost. The discount was initially introduced on October 1 to mark Nigeria's 66th Independence Anniversary, offering N66 off every litre purchased through the NNPC Fuel App, and was subsequently extended until October 31, 2026.

The core of PETROAN's argument is that the discount is currently restricted to NNPC Retail outlets, a network that is too limited to serve a population of more than 230 million people. According to figures cited in reports, NNPC operates more than 900 filling stations, compared with approximately 22,681 outlets nationwide, meaning the company's network accounts for only a small proportion of the country's total filling stations. PETROAN argues that its members' outlets operate across urban centres, rural communities and hard-to-reach locations where NNPC retail stations are unavailable, making the association well positioned to extend the benefits of the intervention beyond major cities and commercial centres.

Gillis-Harry explained that access to discounted petrol would enable independent retail outlets to sell at lower prices while retaining enough profit to cover their operating costs. He said PETROAN members could not afford to forgo their profit margins entirely, unlike NNPC, which he said was prepared to sacrifice part of its profit under the initiative. "We don't have the deep pockets of NNPC to forego profits. The reason is simple: if we have the product already well-discounted landing at our outlets, we can sell at a much cheaper price than if we buy from other sources," he said. He added that the association would pay NNPC for the product and distribute it through its members' outlets, rather than receive the petrol for free. "We'd just be an extension of NNPC's efforts, just doing what NNPC is doing. That way, we are able to carry this same product down to the nooks and crannies of Nigeria. That is more important than having 15 stations in a city serving a population of about 3 million people. If you have an additional 1,000 or 2,000 stations in that city, distribution efficiency will be higher, and Nigerians will benefit more."

PETROAN also called for clear guidelines on the discount per litre, eligible beneficiaries, monitoring mechanisms and distribution channels, stressing that the success of the initiative should ultimately be measured by its impact on transport fares, food prices, business costs and household purchasing power. The association said lower petrol costs for public transport operators could translate into reduced fares for commuters, cheaper movement of agricultural produce and lower logistics expenses for businesses, helping to moderate food prices and ease inflationary pressures if savings are transmitted effectively across the supply chain.

Beyond the petrol discount scheme, PETROAN said its nationwide retail network could support the Federal Government's compressed natural gas initiative. The association said using existing retail outlets and grassroots connections to expand access to CNG could accelerate adoption of cleaner and more affordable alternative fuel, particularly in communities where access to alternative energy solutions remains limited. It positioned itself as a strategic partner capable of championing and piloting the CNG rollout across the country.

The Federal Government has not issued a formal response to PETROAN's request. The association has also received support from the Independent Petroleum Marketers Association of Nigeria, whose National President, Abubakar Maigandi, urged the Tinubu-led government to extend the discount to IPMAN members for greater impact on Nigerians. "What the government did is good. But what we are actually saying is that the government should extend the discount to every marketer, not only NNPC filling stations," Maigandi told Daily Post.

The political context of the debate is significant. The 2027 general elections are less than four months away, with the presidential and National Assembly elections scheduled for January 16, and the governorship and state assembly elections for February 6. President Bola Ahmed Tinubu is seeking a second term on the All Progressives Congress platform, while former Vice President Atiku Abubakar of the African Democratic Congress, former Anambra Governor Peter Obi of the Nigeria Democratic Congress and Oyo State Governor Seyi Makinde of the Allied Peoples Movement are among the major challengers. Atiku has dismissed the 30-day discount as a panic-driven publicity stunt, asking what happens on Day 31, and the Nigeria Labour Congress has given the government a two-week ultimatum to reduce petrol prices to pre-2024 levels and begin minimum wage negotiations. The depot price surge to as high as N1,900 per litre in Port Harcourt, despite the NNPC discount, has added to concerns that the relief may be short-lived. For PETROAN, the request for 30 per cent of the discounted supply is both a commercial proposition and a claim to a role in making the government's intervention work. For Nigerians, the outcome will determine whether the discount reaches beyond the limited network of NNPC stations to the communities where the need is greatest.

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