PETROAN backs World Bank call, pushes for competitive downstream market to curb Inflation
ABUJA — The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has thrown its weight behind the World Bank’s recent call for the reinstatement of petrol import licences, intensifying its long-standing advocacy for a fully liberalized and competitive downstream petroleum sector.
The association described competition as the cornerstone of efficiency, price stability, and energy security, warning that continued supply constraints could deepen inflationary pressures across the Nigerian economy.
PETROAN’s position follows a report by The Guardian Nigeria on April 10, 2026, in which the World Bank urged the Federal Government to reopen the downstream market to broader participation in order to prevent a potential spike in fuel prices.
Reacting to the development in Abuja, PETROAN National President, Billy Gillis-Harry, said the World Bank’s stance reinforces the association’s consistent push for a deregulated market structure driven by multiple players.
“This position validates what we have always maintained—that competition remains the most effective mechanism for stabilizing prices and ensuring energy security,” Gillis-Harry told journalists.
According to the World Bank, limited competition and persistent supply bottlenecks have contributed to the surge in Premium Motor Spirit (PMS) prices, which have reportedly risen above import parity levels.
The institution warned that without urgent reforms, the combination of constrained supply and rising global oil prices could further exacerbate inflation.
Aligning fully with this assessment, PETROAN stressed that reintroducing petrol import licences would not only diversify supply sources but also check monopolistic tendencies and shield consumers from arbitrary pricing.
Gillis-Harry argued that the recent spike in fuel prices underscores deeper structural inefficiencies, particularly the underperformance of state-owned refineries.
“Such price distortions would have been mitigated if government refineries were fully functional or efficiently privatized,” he noted.
The association maintained that sustainable competition in the downstream sector must be anchored on a dual strategy—encouraging fuel importation while accelerating the privatization or commercial restructuring of Nigeria’s refineries in Port Harcourt, Warri, and Kaduna.
PETROAN drew parallels with Nigeria’s telecommunications revolution, where market liberalization ushered in private sector giants, significantly improving service delivery, expanding access, and reducing costs for consumers.
“We have seen this model succeed before,” Gillis-Harry said.
“The entry of private operators transformed the telecom sector. There is no reason the downstream petroleum industry cannot replicate that success.”
While acknowledging the strategic importance of large-scale investments such as the Dangote Petroleum Refinery, PETROAN cautioned against market concentration, emphasizing that true sectoral growth depends on an open and competitive ecosystem.
“Healthy competition is not a threat to local refining—it is a stabilizing force,” the association stated, noting that domestic refining capacity must grow alongside a market structure that encourages multiple investors.
As part of its policy thrust, PETROAN urged the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to take decisive steps toward reform.
Among its key recommendations are the immediate reinstatement of petrol import licences, full privatization or restructuring of state-owned refineries, commencement of production at the Port Harcourt Refinery, and the creation of a truly deregulated market with robust regulatory oversight to prevent monopolies.
The association emphasized that urgent action is required to dismantle supply bottlenecks, restore market confidence, and guarantee fair pricing across the value chain.
PETROAN reaffirmed its commitment to collaborating with government and industry stakeholders to build a resilient, transparent, and competitive petroleum distribution system—one capable of supporting economic stability and driving national development.
For industry watchers, the message is unmistakable: Nigeria’s downstream future hinges not on restriction, but on competition.
