The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reiterated its commitment to promoting healthy competition in Nigeria’s downstream petroleum sector, describing it as key to growth, efficiency, and price stability.
The association expressed support for the recent position of the World Bank, which urged the Federal Government to reinstate petrol import licences to prevent a potential rise in inflation.
Speaking to journalists, PETROAN National President, Billy Gillis-Harry, said the World Bank’s stance aligns with the association’s long-standing advocacy for a liberalised and competitive downstream market.
According to reports, the World Bank noted that limited competition and supply constraints have contributed to rising fuel prices, with Premium Motor Spirit (PMS) selling above import parity levels. It also warned that continued supply rigidity, alongside increasing global oil prices, could intensify inflationary pressures in the country.
Reacting, Gillis-Harry stressed that competition remains the most effective tool for stabilising prices and ensuring energy security. He added that reintroducing petrol import licences would encourage supply diversification, curb monopolistic tendencies, and protect consumers from excessive pricing.
He further argued that the current high cost of petroleum products could have been avoided if government-owned refineries were fully operational or properly privatised.
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PETROAN maintained that sustainable competition in the downstream sector requires a mix of fuel importation and full privatisation of state-owned refineries in Port Harcourt, Warri, and Kaduna to enhance efficiency and eliminate operational bottlenecks.
The association also drew parallels with reforms in Nigeria’s telecommunications sector, noting that liberalisation led to improved services, wider coverage, and reduced costs following the entry of operators such as MTN Nigeria and Airtel Nigeria.
While acknowledging the role of the Dangote Petroleum Refinery in boosting domestic refining capacity, PETROAN emphasised that competition is not a threat to local refining but a necessary mechanism for market stability.
The association added that although large-scale investments like the Dangote refinery represent progress, sustainable economic growth depends on policies that encourage multiple investors and prevent market concentration.
PETROAN urged the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to: Immediately reinstate petrol import licences to encourage multiple supply sources, deepen competition, and stabilise pump prices.
Full privatisation or commercial restructuring of government-owned refineries to ensure efficiency, transparency, and optimal performance. Commencement of production activities at Port Harcourt Refinery.
Creation of a truly deregulated and competitive market environment with clear regulatory oversight that prevents monopolies and promotes fair pricing across the value chain.
The association reaffirmed its commitment to collaborating with stakeholders to build a resilient, transparent, and competitive petroleum distribution system that supports economic stability and national development.
