PETROAN warns against monopolistic practices in Nigeria’s oil sector, urging fair access, competition, and policy reforms to sustain deregulation
PETROAN warns against monopolistic practices in Nigeria’s downstream oil sector, urging the government and industry players to uphold fair competition and open access as the market adjusts to full deregulation.
Speaking at the 2025 OTL Downstream Week in Lagos, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, said the removal of fuel subsidy in 2023 had fundamentally reshaped the market, creating both opportunities and challenges for operators.
Delivering a paper titled “New Frontiers for Competition and Market Access in Downstream Energy”, Gillis-Harry noted that Nigeria’s downstream market, currently valued at about ₦1.2 trillion ($3 billion), is projected to grow by five per cent annually between 2025 and 2030.
According to him, deregulation ended decades of government price control and opened the market to private participation, but it also increased the risk of monopoly by large players.
“PETROAN warns against monopolistic practices, particularly as mega-refineries and dominant importers emerge,” he said. “A healthy market must allow modular refineries, NNPC, Dangote Refinery, and independent marketers to operate on a level playing field.”
Gillis-Harry explained that while deregulation had improved transparency, it also exposed marketers to real market costs, forcing many to rethink their business models.
PETROAN, he added, had made policy recommendations aimed at promoting price stability and consumer protection to avoid economic shocks.
“By supporting domestic refining initiatives, PETROAN aims to reduce Nigeria’s dependency on fuel imports, which are highly vulnerable to global price fluctuations,” he said.
He commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for promoting openness and competitiveness, but urged sustained oversight to prevent price manipulation and collusion.
The PETROAN president stressed that equitable market access was vital to protect independent fuel retailers, who often serve rural and underserved communities.
“Without fair access to supply and distribution networks, independent marketers risk being squeezed out by larger corporations with deeper pockets and preferential contracts,” he warned.
Gillis-Harry highlighted that deregulation was driving innovation across the sector, with new trends such as integrated refining-retail operations, smart filling stations, and on-demand fuel delivery services taking shape.
He noted that automation, digital platforms, and mobile technologies were improving efficiency and customer experience.
According to him, diversification was becoming central to downstream operations, with many outlets now offering LPG, CNG, and EV charging, while adopting solar energy to cut costs and emissions.
On regulatory reform, he called for digitised licensing systems, anti-monopoly safeguards, and public-private partnerships to address port congestion, pipeline vandalism, poor road networks, and storage limitations—issues he described as “critical bottlenecks” to efficient fuel distribution.
He concluded that the future of Nigeria’s downstream sector lay in transparency, innovation, and inclusivity.
“The future of downstream energy is open, competitive, and inclusive,” Gillis-Harry declared.
“We reaffirm PETROAN’s commitment to fair play and price stability, and call on all stakeholders to support reforms that sustain competition in the market.”
entertainment6 months ago
politics8 months ago
events8 months ago
