The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has warned that Nigerian filling stations may shut down without a federal government bailout to sustain the current lower petrol price or allow the fair market price to prevail.

The national president of PETROAN, Billy Gillis-Harry, disclosed this in an interview with DAILY POST on Monday.

DAILY POST reports that fuel prices in Abuja dropped last week to between N930 and N945 per litre, depending on the location.

Reacting, Gillis-Harry insisted that the current lower pump prices are “not in any way guided by fair market pricing.”

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According to him, the decrease neither reflects supply-demand dynamics nor the cost realities of importing, refining, or distributing petrol. He said petrol prices are not determined by actual market fundamentals; thus, the market is being distorted. Distorted markets always come with consequences.

Gillis-Harry warned that eventually, many marketers will lack the capital to continue purchasing products. Once that happens, supply shortages could re-emerge — potentially triggering another round of price hikes or scarcity.

He stressed the need for what he calls “right sizing, right pricing, fair pricing, and honest value.” In other words, petrol must be priced according to real market conditions, not artificial adjustments that appear beneficial on the surface but are damaging underneath.

He added that the entire market is currently “walking towards price volatility guided by Dangote,” implying that Nigeria’s downstream sector has effectively become dependent on one dominant refinery, a situation he argues is unhealthy for competition and stability.

“Lower prices today are not guided by the market, fair market pricing, or fair business evaluation. Neither is it determined by the market process of supply and demand. Basically, what will happen down the road is that decisions will be made that are very unique to the availability of petroleum products.

Decisions like people not having the capital to buy products will stop them from ensuring the provision of petroleum products.

So we need this decision earlier; the sooner we get back to right sizing, right pricing, fair pricing, and honest values in market forces, the better the determination of the price will be.

Everybody is walking towards the price volatility guided by Dangote. So it will be difficult for anyone to take credit for it.

But is it a positive? Is it a positive price value? As I said, the current pricing is not determined by fair market pricing. It’s not determined by market forces of demand and supply. The earlier Nigerians understand that adequate fair market pricing will guarantee better availability.

Everybody is crying about what is happening in the market,” he told DAILY POST.