Petrol Retailers Seek Healthy Competition, Urges 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 licenses. This move, they argue, is crucial for stabilizing prices and ensuring energy security in Nigeria.

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Competition remains the most effective mechanism for moderating fuel prices, improving efficiency, and guaranteeing product availability across the country.

PETROAN's position is strongly supported by recent recommendations from the World Bank. The international financial institution has warned that persistent supply constraints and a lack of robust competition within Nigeria's downstream sector are significant contributors to inflationary pressures, which require urgent attention.

According to PETROAN's national spokesman, Joseph Obele, the National President, Billy Gillis-Harry, stated that the reintroduction of import licenses validates the group's long-standing advocacy for a liberalized market structure. Gillis-Harry emphasized that competition is the most effective mechanism for moderating fuel prices, enhancing operational efficiency, and guaranteeing product availability across the nation.

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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 association highlighted that the World Bank itself has observed that restricted competition in the downstream segment has led to rising petrol prices, with pump prices exceeding import parity levels. PETROAN warns that continued supply rigidity, coupled with increasing global crude oil prices, could further exacerbate inflation throughout the Nigerian economy. They believe that allowing multiple importers would diversify supply sources, counteract monopolistic tendencies, and shield consumers from exploitative pricing practices.

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Allowing multiple importers into the market would diversify supply sources, curb monopolistic tendencies, and protect consumers from exploitative pricing.