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

Emmanuel Addeh in Abuja and Peter Uzoho

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 as a way to stabilise prices and ensure energy security.

The association said its position aligns with recent recommendations by the World Bank, which warned that supply constraints and limited competition in Nigeria’s downstream sector could fuel inflationary pressures if not urgently addressed.

A statement in Abuja by PETROAN’s national spokesman, Joseph Obele, quoted the National President of the organisation, Billy Gillis-Harry, as saying that the call for the reintroduction of import licences validates the group’s long-standing advocacy for a liberalised market structure.

According to him, competition remains the most effective mechanism for moderating fuel prices, improving efficiency, and guaranteeing product availability across the country.

He noted that the World Bank had observed that restricted competition in the downstream segment has contributed to rising prices of petrol, with pump prices exceeding import parity levels. The group also warned that continued supply rigidity, combined with rising global crude prices, could worsen inflation across the economy.

Gillis-Harry argued that allowing multiple importers into the market would diversify supply sources, curb monopolistic tendencies, and protect consumers from exploitative pricing.

He added that the current pricing challenges could have been mitigated if Nigeria’s state-owned refineries were either fully operational or properly privatised.

The PETROAN president stressed that sustainable competition in the downstream sector would require not only the resumption of fuel imports but also the full privatisation or commercial restructuring of government-owned refineries in Port Harcourt, Warri, and Kaduna.

Drawing parallels with the telecoms sector, he said the liberalisation that brought in operators such as MTN Nigeria and Airtel Nigeria led to improved service delivery, expanded access, and lower costs for consumers, noting that similar reforms in the petroleum sector could yield comparable benefits.

The association, however, maintained that promoting competition does not undermine local refining capacity, but rather supports market stability while domestic production grows. It acknowledged the role of the Dangote Petroleum Refinery as a major private sector investment, describing it as a significant milestone for Nigeria’s industrial development.

Nonetheless, PETROAN cautioned against market concentration, emphasising that long-term sustainability depends on policies that encourage multiple investors and prevent dominance by a single player.

Among its recommendations, the group called for the immediate reinstatement of petrol import licences, the privatisation or restructuring of state-owned refineries, and the commencement of production at the Port Harcourt refinery.

It also urged the creation of a truly deregulated market environment backed by strong regulatory oversight to ensure fair pricing and prevent anti-competitive practices.

“In light of the foregoing, PETROAN makes the following recommendations to the federal government, NMDPRA, and the Nigerian National Petroleum Company Limited (NNPC): “Immediate reinstatement of 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,” it pointed out.

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.