PETROAN backs World Bank, seeks fuel import licences to stabilise prices

Mkpoikana Udoma

Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has thrown its weight behind the World Bank call for the reinstatement of petrol import licences, warning that limited competition in Nigeria’s downstream sector is driving price instability and inflation risks.

Reacting to the World Bank’s position, PETROAN President, Billy Gillis-Harry, said the recommendation reinforces the association’s long-standing advocacy for a fully liberalised petroleum market.

“Competition remains the most effective tool for stabilizing prices and ensuring energy security,” Gillis-Harry stated.

According to him, the restriction of supply sources has contributed to rising petrol prices, with Premium Motor Spirit, PMS, selling above import parity levels.

PETROAN noted that the World Bank had warned that continued supply rigidity, combined with rising global oil prices, could worsen inflationary pressures across the Nigerian economy.

Aligning with this position, Gillis-Harry stressed that reintroducing petrol import licences would diversify supply, curb monopolistic tendencies, and protect consumers from exploitative pricing.

“A competitive and liberalized market framework is essential for ensuring price moderation, product availability, and operational efficiency,” he said.

The association also argued that the current pricing challenges could have been mitigated if Nigeria’s government-owned refineries were fully functional or properly privatized.

It called for a dual strategy of sustained fuel importation and full privatization or restructuring of refineries in Port Harcourt, Warri, and Kaduna to drive efficiency and eliminate bottlenecks.

Drawing parallels with the telecoms sector, PETROAN cited the impact of private sector participation by firms such as MTN Nigeria and Airtel Nigeria, noting that liberalisation led to improved services, wider access, and reduced costs.

The group maintained that healthy competition would complement, not undermine, local refining efforts, including output from the Dangote Petroleum Refinery.

“Healthy competition is not a threat to local refining but a necessary mechanism to stabilize the market while domestic capacity continues to grow,” Gillis-Harry said.

PETROAN urged the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and NNPC Limited to urgently implement policies that encourage open market participation and ensure fair pricing across the downstream value chain.

The association reaffirmed its commitment to working with stakeholders to build a “resilient, transparent, and competitive petroleum distribution system” to support economic stability.