Petrol Marketers Urge FG to Restore Petrol Import Licences as Dangote Refinery Announces New Price
- PETROAN supported the World Bank’s call to reinstate petrol import licences
- The association said competition is key to stabilising fuel prices and ensuring supply
- PETROAN called for the privatisation or restructuring of government-owned refineries
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 supported the World Bank’s call for the reinstatement of petrol import licences, saying the move will promote competition and stabilise fuel prices in the country.
The association made this known in a statement signed by its National Public Relations Officer, Dr Joseph Obele, while reacting to the World Bank’s position.
According to PETROAN, the recommendation aligns with its long-standing advocacy for a liberalised downstream petroleum sector.
Source: Getty Images
World Bank position sparks industry reaction
The World Bank had urged the federal government to restore petrol import licences to prevent a potential rise in inflation.
The institution noted that limited competition and supply constraints have contributed to rising fuel prices, with Premium Motor Spirit (PMS) selling above import parity levels.
It also warned that continued supply rigidity, combined with increasing global oil prices, could worsen inflationary pressures in Nigeria.
PETROAN advocates competition, market liberalisation
Reacting to the development, PETROAN National President, Billy Gillis-Harry, said competition remains essential for price stability and energy security.
He explained that reintroducing petrol import licences would encourage multiple supply sources, reduce monopolistic tendencies, and protect consumers from high prices.
PETROAN added that the current pricing challenges could have been avoided if government-owned refineries were fully operational or properly privatised.
Dangote Refinery, Depots reduce prices
Meanwhile, this call by PETROAN is coming days after the Dangote Petroleum Refinery adjusted its ex-depot PMS price downward from N1,210 to N1,208 per litre, while AGO eased from N1,758 to N1,751 per litre.
Other depots also reduced their prices. Rainoil slashed PMS slightly to N1,212, and Ascon dropped to N1,210. A.A Rano held firm at N1,210.
Diesel (AGO) movements were mixed. Ibeto, Integrated, and Swift edged upward to N1,845 from N1,840, while Nipco remained unchanged at N1,850.
Other players like Matrix and Sahara issued no fresh updates
Call for refinery reforms
The association stressed that sustainable competition in the downstream sector requires both fuel importation and reforms in state-owned refineries located in Port Harcourt, Warri, and Kaduna.
According to Gillis-Harry, full privatisation or restructuring of these refineries would improve efficiency, eliminate operational bottlenecks, and create a more competitive supply system.
PETROAN drew a comparison with Nigeria’s telecommunications sector, noting that liberalisation led to improved services, wider coverage, and reduced costs.
The association said similar reforms in the petroleum sector could deliver comparable benefits for consumers.
Role of private investments
The group also acknowledged the importance of private sector investments such as the Dangote Petroleum Refinery, describing it as a major milestone in Nigeria’s energy industry.
However, it maintained that competition should be encouraged to prevent market concentration and ensure long-term sustainability.
PETROAN emphasised that healthy competition would complement, rather than undermine, local refining capacity.
Source: Getty Images
Recommendations to government
The association outlined key recommendations to the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPCL).
These include the immediate reinstatement of petrol import licences, full privatisation or restructuring of state-owned refineries, commencement of production at the Port Harcourt Refinery, and the creation of a fully deregulated market environment.
PETROAN urged authorities to implement policies that promote open market participation, remove supply constraints, and ensure fair competition across the sector.
Dangote Refinery threatens full export
Legit.ng earlier reported that the Dangote Refinery has threatened to fully supply the international market and deny Nigerians fuel if the Nigerian authorities continue to grant import licences to importers.
Sources within the mega refinery disclosed that management is considering exporting all petroleum products in response to the continued issuance of petrol import licences, despite official claims to the contrary.
Experts argued that reduced local supply may lead to fuel shortages, long queues at filling stations, and renewed upward pressure on pump prices. Such an outcome would reverse recent stability in the downstream sector.
Source: Legit.ng
