By Ayomide Otitoju
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to privatize state-owned refineries and provide a ₦100 billion grant to support oil marketers amid challenges in the downstream oil and gas sector.
In a statement on Saturday, titled PETROAN’s Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024, the association highlighted significant developments in the sector over the past year while making key recommendations to address ongoing issues.
The statement, signed by PETROAN President Billy Gillis-Harry, National Secretary Adedibu Aderibigbe, and Spokesman Joseph Obele, advocated for the privatization of refineries such as the Warri and Kaduna facilities. The association argued that transferring ownership to reputable private companies would enhance efficiency and reduce government expenditure.
To prevent the collapse of businesses within the sector, PETROAN requested the ₦100 billion grant from President Bola Tinubu, citing the need to sustain over 10,000 oil marketers’ operations in the face of rising costs following the removal of the fuel subsidy.
Strengthening Sector Resilience
The association called for collaboration with neighboring countries to combat smuggling and urged authorities to deploy digital tracking systems to monitor petroleum product distribution from refineries to retail outlets.
“To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries,” the statement read. “This strategic move will positively impact the country’s economy and energy security.”
Market Reforms and Pricing Stability
PETROAN also emphasized the importance of fostering a competitive market by encouraging new entrants and promoting a level playing field to avoid monopolies and ensure fair pricing.
Since the removal of the fuel subsidy in May 2023, the price of petrol has surged from approximately ₦170 per liter to about ₦1,000 in some parts of the country, posing significant challenges for businesses and consumers alike.
The association urged swift government action to mitigate the impact of the subsidy removal while unlocking the potential of Nigeria’s refining sector to drive economic growth and enhance energy security.
