Petrol Retailers Seek Healthy Competition, Urge FG to Reinstate Import Licences

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its call for a more competitive downstream petroleum sector, urging the federal government to immediately reinstate petrol import licences to stabilise prices and enhance energy security.

In a statement issued in Abuja, PETROAN’s National President, Billy Gillis-Harry, said the association’s position aligns with recent World Bank recommendations, which warned that supply constraints and limited competition in Nigeria’s downstream sector could fuel inflationary pressures.

Gillis-Harry argued that competition remains the most effective mechanism for moderating fuel prices, improving efficiency, and guaranteeing product availability. He noted that restricted competition has contributed to rising petrol prices, with pump prices exceeding import parity levels. Continued supply rigidity, combined with rising global crude prices, could worsen inflation across the economy, he added.

According to the PETROAN president, allowing multiple importers into the market would diversify supply sources, curb monopolistic tendencies, and protect consumers from exploitative pricing. He also stated that current pricing challenges could have been mitigated if state-owned refineries were fully operational or properly privatised.

Drawing a parallel with the telecoms sector, Gillis-Harry said the liberalisation that brought in MTN Nigeria and Airtel Nigeria led to improved service delivery and lower costs, adding that similar reforms in the petroleum sector could yield comparable benefits.

The association emphasised that promoting competition does not undermine local refining capacity but rather supports market stability while domestic production grows. It acknowledged the Dangote Petroleum Refinery as a major private sector investment but cautioned against market concentration, stressing that long‑term sustainability depends on policies that encourage multiple investors.

PETROAN therefore recommended that the federal government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPC) should immediately reinstate petrol import licences to encourage multiple supply sources, deepen competition, and stabilise pump prices. It also called for the full privatisation or commercial restructuring of government-owned refineries in Port Harcourt, Warri, and Kaduna to ensure efficiency and transparency, as well as the commencement of production activities at the Port Harcourt Refinery. Furthermore, the association urged the creation of a truly deregulated and competitive market environment with clear regulatory oversight to prevent monopolies and promote fair pricing across the value chain.

PETROAN reiterated its commitment to working with the government and other stakeholders to build a transparent, resilient, and competitive petroleum distribution system capable of supporting economic stability and national development.