The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned against monopolistic practices in the downstream oil sector, stressing that open competition and equitable access are essential for sustaining Nigeria’s deregulated petroleum market.
Speaking at the OTL Downstream Week 2025 in Lagos, PETROAN President Dr. Billy Gillis-Harry presented a paper titled “New Frontiers for Competition and Market Access in Downstream Energy,” where he examined the evolution of the sector following the 2023 fuel subsidy removal.
Deregulation Reshapes Nigeria’s Downstream Landscape
Gillis-Harry noted that the elimination of the subsidy had fundamentally transformed the market, opening it to private players and ending decades of government price control. He estimated the current value of Nigeria’s downstream energy market at N1.2 trillion ($3 billion), with a projected 5% annual growth rate between 2025 and 2030.
“PETROAN has consistently warned against monopolistic practices, particularly in light of emerging mega-refineries and dominant importers,” Gillis-Harry said.
“A diverse playing field — where modular refineries, NNPC, Dangote Refinery, and independent marketers all operate freely — is essential for the sector’s health.”
While deregulation has encouraged transparency and private investment, Gillis-Harry said it has also exposed marketers to the real cost of operations, affecting profit margins and compelling new strategies for sustainability.
Protecting Independent Retailers and Ensuring Market Equity
The PETROAN president emphasised that independent retailers remain vital to the downstream ecosystem, particularly in rural and underserved communities.
“Without fair access to supply and distribution networks, independent retailers risk being squeezed out by larger players with deeper pockets and preferential deals,” he warned.
He said independent filling stations create thousands of jobs and stimulate local economies, arguing that maintaining an open and fair market would encourage innovation, better service delivery, and more competitive pricing.
Pushing for Domestic Refining and Consumer Protection
Gillis-Harry reaffirmed PETROAN’s commitment to promoting domestic refining as a buffer against global price volatility. He said the association has submitted policy recommendations aimed at stabilising prices and shielding consumers from erratic fuel costs.
He commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its efforts toward transparency and competitiveness but urged continued collaboration to strengthen market oversight and curb price manipulation.
Technology, Diversification, and the Future of Energy
Highlighting new trends shaping the deregulated landscape, Gillis-Harry said downstream operators are increasingly adopting digital tools, automation, and mobile apps to boost efficiency and improve customer experience.
He added that many retail outlets are diversifying into Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Electric Vehicle (EV) charging services — with some stations already powered by solar energy to reduce costs.
“Diversification is now central to downstream operations. The future will be defined by regional hubs, modular refineries, blockchain transparency tools, and smart logistics systems powered by artificial intelligence,” he said.
Strengthening Infrastructure and Policy Frameworks
The PETROAN president identified key challenges affecting the sector — including port congestion, vandalised pipelines, poor road networks, and storage deficits — which he described as critical bottlenecks to efficient fuel supply.
He called for transparent and digitised licensing systems, anti-monopoly safeguards, and public-private partnerships to rehabilitate vital infrastructure such as pipelines and ports.
Building a Competitive and Inclusive Future
In closing, Gillis-Harry reaffirmed PETROAN’s commitment to a competitive, inclusive, and transparent downstream sector, urging all stakeholders to support reforms that promote healthy competition and ensure fair pricing.
“The future of downstream energy is open, competitive, and inclusive,” he said.
“We call on all stakeholders to support reforms that promote healthy competition and ensure price stability in the industry.”
The paper underscored PETROAN’s position as a key advocate for market fairness, consumer protection, and inclusive growth in Nigeria’s evolving energy landscape.