By Obiabin Onukwugha
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has urged the federal government to reinstate petrol import licenses, saying it is a catalyst for growth, efficiency, and price stability.
This comes as the body also reiterated its
strong commitment to promoting healthy competition in Nigeria’s downstream petroleum sector,
PETROAN noted the recent position of the World Bank, which urged the Federal Government to reinstate petrol import licences to avert a potential inflation spike.
Reacting, National President of PETROAN, Dr. Billy Gillis-Harry, emphasized that the submission by the World bank further validates PETROAN’s long-standing advocacy for a liberalized and competitive downstream market.
The World Bank has highlighted that restricted competition and supply constraints in the downstream sector have contributed to rising fuel prices, with Premium Motor Spirit (PMS) prices exceeding import parity levels.
Dr Gillis-Harry stated that competition remains the most effective tool for stabilizing prices and ensuring energy security.
PETROAN National PRO, Dr Joseph Obele, in a statement on Monday, said the body aligns with the World Bank position, emphasizing that “a competitive and liberalized market framework is essential for ensuring price moderation, product availability, and operational efficiency.”
Dr. Gillis-Harry noted that the reintroduction of petrol import licences will
promote supply diversification, prevent monopolistic tendencies, and ultimately protect consumers from exploitative pricing. He further stressed that the recent outrageous price of petroleum products would not have occurred if government-owned refineries were fully
functional or properly privatized.
“PETROAN strongly asserts that sustained competition in the downstream sector
can only be achieved through a combination of fuel importation and the full privatization of government-owned refineries in Port Harcourt, Warri, and Kaduna,” he said, pointing out that this will ensure efficiency, eliminate operational bottlenecks, and create a truly competitive supply environment.
The Association acknowledged the strategic importance of investments such as the Dangote Petroleum Refinery, which it said, represents a significant milestone in Nigeria’s industrial and energy
landscape.
“The Association notes that such large-scale private investments demonstrate the potential of the Nigerian economy when supported by the right policies. However, PETROAN
emphasizes that true economic growth and sustainability can only be achieved through liberalization that encourages multiple investors, promotes competition, and avoids market concentration,” the statement further read.
The body called on the Federal Government, and relevant agencies including the Nigeria Mainstream Downstream Petroleum Regulatory Authority,NMDPRA, and the Nigerian National Petroleum Company Limited, NNPCL, to immediately reinstate petrol import licences to encourage multiple supply sources, deepen competition, and stabilize pump prices.
It also called for full privatization or commercial restructuring of government-owned refineries to ensure
efficiency, transparency, and optimal performance and as well, commencement of production activities at the Port Harcourt Refinery.
