By Olusegun Samuel Precious
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised alarm over the escalating costs of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Liquefied Petroleum Gas (LPG), warning that unchecked energy prices are pushing millions of Nigerians into severe economic hardship.
In a comprehensive policy statement issued on Friday, PETROAN National Public Relations Officer, Dr. Joseph Obele, cautioned that the soaring costs of petrol, diesel, and cooking gas have moved beyond downstream energy metrics to become a full-blown cost-of-living crisis across households, small businesses, and agricultural sectors.
Dr. Obele identified global crude volatility, persistent foreign exchange pressures on the naira, high distribution logistics, and rising operational overheads as the primary drivers behind the escalating pump prices.
“When PMS becomes more expensive, transportation fares rise immediately. High diesel costs inflate freight, power generation, and manufacturing expenses, while skyrocketing cooking gas prices disproportionately hit everyday households,” Obele stated, noting that these combined pressures continue to erode purchasing power and threaten SME survival.
To mitigate the systemic impact on the economy, the association outlined five strategic recommendations for government action:
Accelerate Domestic Refining: Support the full operation of public and private refineries to eliminate import dependence and buffer domestic prices from international foreign exchange shocks.
Expand Alternative Energy: Invest heavily in Compressed Natural Gas (CNG) conversion infrastructure, refuelling stations, and affordable LPG distribution networks.
Reduce Distribution Logistics Costs: Repair critical road networks and secure transportation corridors to eliminate avoidable freight surcharges passed on to consumers.
Deploy Targeted Interventions: Provide direct, targeted relief measures for mass transit operators, smallholder farmers, and essential SMEs rather than unsustainable general subsidies.
Enforce Market Transparency: Strengthen regulatory oversight across downstream operations to prevent price gouging and ensure fair competition.
Dr. Obele emphasized that energy policy must ultimately prioritize citizen welfare, adding that building a diversified, reliable, and affordable domestic energy market remains the only sustainable path toward economic recovery.
