Barbara Bako, Abuja.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has defended the continued issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), warning against any move that could create monopoly in the downstream petroleum sector.
In a statement, PETROAN said its position followed renewed legal action reportedly instituted by the Dangote Petroleum Refinery challenging the issuance of import licences to marketers and the Nigerian National Petroleum Company Limited (NNPCL).
Speaking during the PETROAN Rivers State chapter election in Port Harcourt, where Pastor Eleto emerged as Executive Chairman of the state chapter, the National President of PETROAN, Dr. Billy Gillis-Harry, said competition remains essential for ensuring energy security, price stability and uninterrupted fuel supply across the country.
According to him, while corporate organisations have the constitutional right to seek legal redress, Nigeria’s downstream petroleum market must remain open and competitive in the interest of consumers and the economy.
He noted that competition encourages product availability, efficiency and price moderation within the petroleum distribution chain, stressing that the sector should not tilt towards monopoly regardless of the scale of investment by any operator.
Gillis-Harry, however, acknowledged the contribution of the Dangote Refinery to local refining capacity, job creation and reduction in dependence on fuel imports.
He said, “PETROAN acknowledges the significant investment made by the Dangote Refinery and commends its contribution to local refining capacity, job creation, and reduction in fuel import dependence.
“However, a liberalised downstream market remains essential, where multiple operators can function fairly under the regulatory supervision of the Federal Government.”
The PETROAN president warned that monopoly in the downstream sector could lead to exploitative pricing, supply manipulation, artificial scarcity and reduced choices for consumers.
He added that healthy competition would instead support lower fuel prices, improved nationwide distribution, better customer service and increased investment in the sector.
PETROAN also cited provisions of the Petroleum Industry Act (PIA) 2021 to justify the powers of the NMDPRA to issue import licences where necessary to address supply shortfalls and maintain market stability.
According to the association, Sections 32, 33, 109 and 317 of the Act empower the regulatory authority to ensure energy security, maintain uninterrupted supply of petroleum products and promote competitive markets.
The association maintained that the issuance of import licences remains lawful and necessary where domestic refining capacity is insufficient to meet national demand.
PETROAN further urged stakeholders in the oil and gas industry to prioritise collaboration and national interest over market dominance, assuring Nigerians that it would continue to advocate policies that promote fair competition, fuel accessibility and sustainable growth in the downstream petroleum sector.
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