The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned against monopolistic practices in the downstream oil sector, stressing that fair access and open competition remain vital for sustaining Nigeria’s deregulated petroleum market.
Presenting a paper, titled: “New Frontiers for Competition and Market Access in Downstream Energy,” at the ongoing OTL Africa Downstream Week 2025, PETROAN President, Dr Billy Gillis-Harry, said the removal of fuel subsidy in 2023 reshaped the market, creating fresh opportunities as well as challenges for operators.
He disclosed that Nigeria’s downstream energy market, valued at about N1.2 trillion ($3 billion), is projected to grow at a five per cent compound yearly growth rate between 2025 and 2030.
According to him, subsidy removal ushered in market liberalisation that opened the space for private participation and ended decades of government price control.
“PETROAN has consistently warned against monopolistic practices, particularly in light of emerging mega-refineries and dominant importers. A diverse playing field, where modular refineries, NNPC, Dangote Refinery, and independent marketers all operate freely, is essential for the sector’s health,” Gillis-Harry said.
He noted that while deregulation had enhanced transparency, it also exposed marketers to the true cost of operations, affecting profit margins and necessitating new business strategies.
Gillis-Harry explained that PETROAN had adopted proactive measures to promote price stability and consumer protection, adding that the association had made policy recommendations to curb price volatility, which could destabilise the economy and discourage investment.
“By supporting domestic refining initiatives, PETROAN aims to reduce reliance on imports, which are more susceptible to global price shocks,” he said.
He commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its efforts to promote transparency and competitiveness but urged sustained collaboration to strengthen market oversight and prevent price manipulation.
The PETROAN president emphasised that equitable market access is critical to safeguard independent retailers who often serve rural and underserved communities, noting that such outlets generate thousands of jobs and support local economies.
“Without fair access to supply and distribution networks, independent retailers risk being edged out by larger players with deeper pockets and preferential deals,” he warned.
He said enabling independent marketers to compete effectively would drive innovation, improve service delivery, and ensure more competitive pricing.
Gillis-Harry also identified emerging business trends arising from deregulation, including integrated refining and retail chains, smart fuel stations, and on-demand fuel delivery services.
He said digital technologies, automation and mobile applications are increasingly being deployed to enhance operational efficiency and customer engagement.
He noted that diversification was now central to downstream operations, as more outlets expand into LPG, CNG and EV charging, with some adopting solar energy to cut operational costs.
On policy direction, Gillis-Harry stressed that transparent and digitised licensing systems were essential to lower entry barriers for smaller players. He called for anti-monopoly safeguards, liberal import policies and public-private partnerships to rehabilitate roads, pipelines and ports critical to fuel distribution.
He identified major sectoral challenges, including port congestion, pipeline vandalism, poor road infrastructure and storage constraints, describing them as obstacles to efficient fuel supply.
