Nigeria’s oil marketers have called for the liberalisation of the downstream petroleum sector, urging regulators to allow more licensed operators to import Premium Motor Spirit (PMS) in a bid to stabilise prices and protect consumers from global supply shocks.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, made the call on Tuesday during an appearance on Channels Television where he stressed that increased competition among suppliers would help moderate rising petrol prices currently driven by international market disruptions.
Petrol prices in Nigeria have surged above N1,200 per litre in recent weeks, largely influenced by geopolitical tensions in the Middle East that have constrained global supply chains and pushed up import costs. Gillis-Harry argued that opening up the market to more importers would create competitive pricing dynamics and reduce the risk of supply shortages.
He noted that while Nigeria’s domestic refining capacity is improving, particularly with operations at the Dangote Refinery, the country cannot yet rely solely on local production to meet demand.
According to him, a hybrid approach that combines domestic refining with controlled importation is necessary to ensure energy security and affordability.
“We should not depend entirely on imports, but at the same time, we must allow them in the interim to encourage competition and stabilise supply,” he said.
“If multiple suppliers are active in the market, pricing will naturally become more competitive, which ultimately benefits consumers.”
Gillis-Harry emphasised that liberalisation does not undermine local refining efforts but rather complements them.
He reiterated PETROAN’s support for the Dangote Refinery while advocating for additional supply channels to prevent monopolistic pressures and future price distortions.
The PETROAN president also pushed back against recent recommendations by the World Bank, which called for expanded fuel importation as part of broader measures to address inflation and supply constraints in Nigeria.
In its April 2026 Nigeria Development Update, the World Bank highlighted limited competition in the downstream sector and restrictions on fuel imports as key drivers of rising domestic prices.
The institution recommended reinstating petrol import licences to improve supply diversity and align local prices more closely with international benchmarks.
Data from the report showed that as of March 2026, petrol prices in Nigeria stood at approximately N1,275 per litre, about 12 per cent higher than the estimated import parity price of N1,122 per litre, suggesting inefficiencies in the current supply structure.
However, Gillis-Harry expressed reservations about adopting external policy prescriptions wholesale, insisting that Nigeria possesses sufficient local expertise to design solutions tailored to its unique economic realities.
“I do not accept everything the World Bank advises. Nigeria has capable economists and policymakers who understand the local terrain and can chart the right course,” he said.
Addressing concerns about the quality of imported fuel, he dismissed claims that liberalisation could open the floodgates to substandard products.
He maintained that regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) remains robust enough to ensure compliance with quality standards.
“Imported products go through strict regulatory checks.
There is no room for substandard fuel in the system,” he said, adding that past challenges with product quality have been effectively addressed through improved enforcement.
He further explained that PETROAN members, who span major and independent marketers, already participate in fuel importation when permitted and adhere to established quality benchmarks.
Looking ahead, Gillis-Harry called for sustained efforts to revitalise Nigeria’s state-owned refineries while encouraging private sector investments from emerging players such as BUA and Azikel to deepen domestic refining capacity.
He concluded that a liberalised and competitive downstream sector remains critical to achieving long-term price stability, supply security, and affordability for Nigerian consumers.
“If we have multiple sources of supply, local and imported, competition will thrive, and affordability will follow. That is the ultimate goal for Nigerians,” he said.