The Petroleum Products Retail Outlets Owners Association of Nigeria has urged the Federal Government to reopen petrol imports to promote competition and stabilise fuel prices in the country.
Recall that the Nigerian Midstream and Downstream Petroleum Regulatory Authority said last month that it suspended fuel importation due to improved domestic refining capacity.
But PETROAN, in a statement signed by its National Public Relations Officer, Joseph Obele, said reinstating petrol import licences would encourage multiple supply sources and deepen competition in the downstream petroleum sector.
PETROAN noted the recent position of the World Bank, urging the Federal Government to reinstate petrol import licences to avert a potential inflation spike.
The National President of PETROAN, Billy Gillis-Harry, said the position validates the association’s long-standing advocacy for a liberalised and competitive downstream market.
According to the statement, the World Bank highlighted that restricted competition and supply constraints in the downstream sector have contributed to rising fuel prices, with petrol prices exceeding import parity levels. The institution also warned that sustained supply rigidity, coupled with rising global oil prices, could worsen inflationary pressures across the Nigerian economy.
Reacting, Gillis-Harry stated that competition remains the most effective tool for stabilising prices and ensuring energy security.
“The recent outrageous price of petroleum products would not have occurred if government-owned refineries were fully functional or properly privatised,” he said.
The association president emphasised that reintroduction of petrol import licences would promote supply diversification, prevent monopolistic tendencies, and protect consumers from exploitative pricing.
He added that sustained competition in the downstream sector could be achieved through a combination of fuel importation and full privatisation of government-owned refineries in Port Harcourt, Warri and Kaduna.
PETROAN drew a parallel with reforms in the telecommunications sector, noting that the entry of operators such as MTN and Airtel improved service delivery and reduced costs for consumers.
The association also acknowledged investments such as the Dangote refinery, saying healthy competition is not a threat to local refining but a mechanism to stabilise the market while domestic capacity grows.
PETROAN recommended immediate reinstatement of petrol import licences, full privatisation or commercial restructuring of government-owned refineries, commencement of production activities at Port Harcourt refinery, and creation of a deregulated and competitive market environment.
It called on the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and the Nigerian National Petroleum Company Limited to implement policies that encourage open market participation and ensure a level playing field for operators.
“In light of the foregoing, PETROAN makes the following recommendations to the Federal Government, NMDPRA and the Nigerian National Petroleum Company Limited: 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; and commencement of production activities at the Port Harcourt refinery,” PETROAN said.
The association noted that it remains committed to working collaboratively with stakeholders to build a resilient and competitive petroleum distribution system that supports economic stability and national development.
SOURCE: PUNCH NEWS PAPER
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