President of the Petroleum Products Retail Outlets Association of Nigeria, PETROAN, Billy Gillis Harry, has offered a robust defense for the delayed reduction in fuel prices at the pumps across the country. He explained that marketers need adequate time to sell off their existing stock of more expensive fuel purchased earlier before they can implement lower prices that reflect current market realities. According to him, forcing an immediate price slash without clearing the old inventory would result in significant financial losses for marketers and could destabilize the entire supply chain.

Gillis Harry emphasized that the current situation stems from legitimate business considerations rather than any attempt to exploit consumers. He noted that petroleum marketers operate on thin margins and must recover their investments in previously acquired products before passing on the benefits of any price drop in the international market.

This approach, he argued, ensures the long term sustainability of the downstream oil sector and prevents possible shortages that could arise if marketers incur heavy losses. Industry observers acknowledge that such inventory management practices are common in volatile commodity markets like petroleum, where purchase costs can fluctuate rapidly.

The PETROAN leader called for understanding from the public and stakeholders while assuring that price reductions will be effected as soon as the old stock is exhausted. He urged government agencies and regulators to consider these practical realities when setting expectations for the speed of price adjustments in the liberalized fuel market.