Keypoints
- PETROAN President, Dr. Billy Gillis-Harry, has urged the Federal Government to reinstate petrol import licences to end “supply rigidity” and lower pump prices.
- The call follows a World Bank report warning that restricted competition in the downstream sector could trigger a massive inflation spike.
- PMS prices are currently reported to be exceeding import parity levels due to supply constraints and limited market participants.
- The association also advocated for the full privatisation of government-owned refineries in Port Harcourt, Warri, and Kaduna to ensure operational efficiency.
Main Story
In a statement issued on Tuesday in Abuja, Dr. Billy Gillis-Harry stated that the World Bank’s recent findings validate PETROAN’s long-standing push for a liberalized downstream market.
He explained that a competitive framework is the only way to protect consumers from “exploitative pricing” and ensure that product availability remains consistent across the country. He further noted that the reintroduction of import licences would prevent monopolistic tendencies, allowing for a more diverse and resilient supply chain.
Gillis-Harry mentioned that the current high cost of fuel would have been avoided if Nigeria’s state-owned refineries were functional or properly privatized.
He observed that while local refining, including the Dangote Refinery is critical, healthy competition from imports is a necessary mechanism to stabilize the market in the short term. He added that the association is ready to work with regulatory agencies to remove bottlenecks and create a level playing field for all operators.
The Issues
The primary challenge for the government is the monopoly-parity gap, where a single or limited supply source allows prices to stay artificially high even when global conditions might suggest otherwise. Authorities must solve the problem of refinery inertia; the Port Harcourt and Warri facilities have missed multiple “commencement dates,” leaving the nation dependent on a fragile supply loop. Furthermore, there is a risk that import dependency could drain foreign exchange reserves, contradicting the government’s “Naira-for-Crude” strategy aimed at domestic self-sufficiency. To achieve price stability, the Ministry of Petroleum must now balance the need for “infant industry protection” for local refiners with the urgent need for “price relief” for a population facing 2026’s inflationary pressures.
What’s Being Said
- “The reintroduction of petrol import licences will promote supply diversification and prevent monopolistic tendencies,” stated Dr. Billy Gillis-Harry.
- World Bank economists highlighted that restricted competition is a primary contributor to PMS prices exceeding what it would cost to simply import the product.
- Independent marketers have argued that without multiple supply sources, they are at the mercy of “outrageous” pricing from dominant players.
- Energy analysts observed that the “Naira-for-crude” initiative is a great long-term plan, but the immediate “supply rigidity” is what is driving the current inflation spike.
What’s Next
- The Federal Government is expected to respond to the World Bank’s recommendations, potentially reviewing the current restricted import policy.
- PETROAN is anticipated to intensify its lobbying for a “truly deregulated” market where its members can source products from the most cost-effective providers.
- The Port Harcourt Refinery remains under intense scrutiny, with a fresh “production commencement” deadline likely to be announced by the NNPC.
- Inflation figures for April 2026 are expected to show the impact of the current fuel price regime, which may force a policy shift toward the liberalisation Gillis-Harry is advocating.
Bottom Line
PETROAN’s demand highlights the tension between “Buying Nigerian” and “Buying Cheap.” While the goal is domestic refining, the association is warning that a monopoly on supply—even a local one—could be just as damaging to the Nigerian wallet as the old import-dependent system.
