The Petroleum Products Retail Outlets Owners Association of Nigeria has warned against monopolistic practices in the downstream oil sector, saying fair access and open competition are critical to sustaining Nigeria’s deregulated market.
Presenting a paper titled “New Frontiers for Competition and Market Access in Downstream Energy” at the OTL Downstream Week 2025, the President of PETROAN, Dr Billy Gillis-Harry, said the removal of fuel subsidy in 2023 had reshaped the market, creating both opportunities and new challenges for industry players.
He said Nigeria’s downstream energy market, valued at about N1.2tn ($3bn), is projected to grow at a five per cent compound annual growth rate between 2025 and 2030.
According to him, the subsidy removal ushered in market liberalisation that allowed 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 deregulation had encouraged transparency but also exposed marketers to the true cost of operations, impacting margins and requiring new strategies.
Gillis-Harry said PETROAN had taken a proactive stance in promoting price stability and consumer protection, adding that the association had made policy recommendations to reduce price volatility, which he said could destabilise the economy and deter 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 for efforts to enhance transparency and competitiveness but urged continued collaboration to strengthen market oversight and discourage price manipulation.
The PETROAN president said equitable access to the market was essential to protect independent retailers who often serve rural and underserved communities. He noted that independent outlets create thousands of jobs and contribute to local economic growth.
“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 allowing independent marketers to compete would encourage innovation, better customer service, and more competitive pricing across the board.
Gillis-Harry also highlighted new business trends emerging from deregulation, including integrated refining and retail chains, smart fuel stations, and on-demand fuel delivery services.
He said digital technologies, automation, and mobile apps were now being deployed to improve efficiency and customer engagement.
He noted that diversification was becoming central to downstream operations, as more outlets were expanding to offer LPG, CNG, and EV charging, with some stations powered by solar energy to reduce operational costs.
On policy direction, Gillis-Harry said transparent and digitised licensing systems were vital to lowering entry barriers for small players. He called for anti-monopoly safeguards, import liberalisation, and public-private partnerships to rehabilitate roads, pipelines, and ports critical to fuel distribution.
He identified major challenges such as port congestion, pipeline vandalism, poor road networks, and storage deficiencies, describing them as obstacles to efficient fuel supply.
The PETROAN president recommended stronger collaboration among stakeholders and consumer protection measures that balance open-market principles with fair pricing.
He said the future of the downstream sector would be defined by regional hubs, modular refineries, blockchain-based transparency tools, and smart logistics systems powered by artificial intelligence.
“The future of downstream energy is open, competitive, and inclusive. We hereby reaffirm PETROAN’s commitment to healthy competition and price stability in the downstream sector. We call on all stakeholders to support reforms that will promote healthy competition and ensure price stability in the industry,” Gillis-Harry said.
