A report expects full deregulation of the downstream sector to trigger new competition, force down the price of premium motor spirit (PMS) and increase supply this year.

The Bloomfield report titled, ‘The Nigerian Oil and Gas Sector: 2024 In Review and an Outlook For 2025’ expects to see a full and continuous deregulation of the downstream sector.

It pointed at the partnership between the Dangote Refinery and MRS Oil Nigeria Plc, which has led to a reduction in the prices of petroleum products, as a pointer to the future trend.

The report outlined how full deregulation would attract more private-sector players, and create a competitive market that could lower costs in the long term while ensuring stable supply chains.

With the removal of subsidies already impacting fuel prices, Bloomfield suggested that competition among marketers would be critical in determining fair PMS pricing.

“Further, in 2025, with the increase of capacity by Dangote Refinery and the expected completion of the rehabilitation of government-owned refineries, Nigeria is poised to become a potential exporter of refined petroleum products.

A reduction or stoppage of the importation of refined petroleum products will positively translate to a reduction in the landing cost of refined petroleum products,” it stated.

Also, the report highlights the positive implications for Nigeria’s domestic gas market. As deregulation encourages private investments, gas processing and distribution are expected to improve, supporting the country’s energy transition goals, it said.

It envisages that there will be an increase in gas delivery to the domestic market.