The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the Federal Government to approve a distribution partnership with the Nigerian National Petroleum Company Limited (NNPCL) to extend discounted petrol sales beyond the national oil company's retail network and ease queues at its filling stations.
The proposal comes as NNPCL offers petrol at a reported discount of ₦66 per litre, bringing the pump price to ₦1,339 per litre for customers with access to its fuel application, according to NNPC spokesperson Andy Odey, as reported by Nigerian Tribune on October 15, 2026.
PETROAN President Billy Gillis-Harry said the association's network of more than 9,000 retail outlets could significantly expand access to the discount scheme compared with NNPCL's approximately 900 filling stations.
Speaking on a radio programme monitored by Nigerian Tribune in Abuja, Gillis-Harry said PETROAN had offered to distribute 30 per cent of the discounted fuel under terms approved by the government, arguing that a wider retail network would reduce congestion and improve the scheme's reach across the country.
“We even offered that PETROAN’s stations can distribute 30% of that (fuel) within the ambit of what the government approves and that will help in deeper penetration of petroleum products across the country,” he said.
Gillis-Harry argued that concentrating discounted sales at a limited number of NNPCL stations would inevitably create queues, particularly in locations where several retail outlets compete for customers but only one offers the reduced price.
He said PETROAN members were prepared to pay for the products and participate in the scheme, provided the commercial terms allowed them to recover their costs and earn a modest margin.
The association's position highlights a key consideration for expanding the discount programme: the need to balance affordability for consumers with the commercial sustainability of independent fuel retailers.
Gillis-Harry said PETROAN members could not simply absorb the ₦66-per-litre discount from their existing margins without a pricing mechanism that compensated them for participating. He stressed that retailers needed sufficient returns to maintain stock levels and keep their stations operational.
“There must be economic maths that would be able to enhance in giving us the value and not just suggesting that the N66 should be taken off in our cost so that what we sell, we regain it,” he said.
He added that participating outlets should be able to sell petrol at the same pump price as NNPCL stations while retaining a minimal profit to support their operations and replenish stocks.
For the downstream petroleum market, the proposal raises questions about how the government and NNPCL would structure product allocation, wholesale pricing, reimbursement and retail margins if the scheme were extended to independent marketers.
A workable arrangement would need clear eligibility criteria, transparent pricing and settlement procedures, as well as safeguards to ensure that the discount reaches consumers without undermining participating retailers' ability to sustain supply.
PETROAN maintained that its nationwide network could help the programme reach more Nigerians and deliver its intended benefits more quickly. However, the proposed partnership remains subject to government approval, and no implementation timeline or detailed commercial framework was provided in the report.
If approved, the arrangement could widen access to discounted petrol and ease pressure on NNPCL retail outlets. Its effectiveness would ultimately depend on the volume of products allocated to participating marketers, the consistency of supply and the pricing terms agreed by all parties.