PETROAN Discloses What Could Further Lower Fuel Prices in 2026
- PETROAN says a steady crude oil supply is key to reducing fuel prices in 2026
- The association blamed irregular crude allocation and pipeline issues for price instability
- It said the naira-for-crude policy has potential but faced implementation challenges
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said that stable crude oil supply to domestic refineries and predictable pricing policies are critical to lowering fuel prices in 2026.
The association made this known in its 2026 outlook, signed by its National President, Billy Gillis-Harry, and spokesperson, Joseph Obele, according to the group.
Source: Getty Images
PETROAN urged the federal government and relevant regulators to address persistent challenges such as irregular crude allocation, pipeline vandalism, and frequent price fluctuations, which it said continued to hurt retail operators and create uncertainty in the downstream market.
According to the association, steady and adequate crude supply to local refineries would boost production, reduce dependence on imported petroleum products, and help stabilise pump prices nationwide.
Naira-for-Crude policy had limited impact
PETROAN noted that while the naira-for-crude policy introduced last year was designed to allow refineries to purchase crude oil in naira rather than dollars, its impact was limited by delays, pricing disputes, and inconsistent allocations.
The association said improving transparency and ensuring a timely crude supply would help unlock the full benefits of the policy in 2026.
It also highlighted intense competition between fuel importers and local refiners in 2025, describing the situation as a price war that resulted in frequent pump price changes, heavy financial losses for retail operators, and reduced profit margins.
PETROAN acknowledged that while consumers enjoyed short-term relief from lower prices, the instability negatively affected long-term investment confidence in the downstream sector.
Source: Getty Images
PETROAN welcomes 30 new refineries
On domestic refining, the association welcomed the approval of more than 30 private refinery licences since the Petroleum Industry Act came into force.
It said about 23 of these refineries are currently under construction and could collectively add over 850,000 barrels per day to Nigeria’s refining capacity when completed.
According to PETROAN, the additional capacity would complement existing large-scale refineries and significantly reduce the country’s reliance on imported fuel.
The association stressed that improving crude supply, strengthening pipeline security, and ensuring fair competition would help stabilise fuel prices and support sustainable growth in the sector.
Looking ahead, PETROAN called on policymakers to maintain import flexibility to prevent supply disruptions, encourage alternative energy sources such as compressed natural gas (CNG), liquefied petroleum gas (LPG), and solar power, and promote continuous engagement among regulators, refiners, and retail operators.
It added that achieving affordable and sustainable fuel prices in 2026 would require a balanced approach that combines domestic refining, supply security, and transparent pricing mechanisms.
Price competition to benefit consumers – NNPCL boss
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr Bayo Ojulari, said that petrol price competition will ultimately favour consumers.
Ojulari explained that market tension is expected during Nigeria’s shift to local refining amid a price war between Dangote Refinery and marketers.
He added that NNPCL no longer regulates prices under the Petroleum Industry Act.
Source: Legit.ng
