As emerging domestic refiners and dominant importers of petroleum products battle for market share, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned against monopolistic practices in the downstream oil sector, calling for fair access and open competition.
PETROAN President, Dr Billy Gillis-Harry, made the call while presenting a paper titled “New Frontiers for Competition and Market Access in Downstream Energy” at the OTL Downstream Week 2025 in Lagos.
Gillis-Harry stressed that under the current deregulated petroleum market, fair access and healthy competition are critical to sustainability.
He stated that with the emergence of mega-refineries (such as Dangote), the modular ones, the NNPC, and dominant importers, there is a need for a level playing field for all stakeholders, including independent marketers.
He noted that while fuel subsidy removal led to deregulation of the market, creating opportunities for private participation, it also posed new challenges for existing industry players, requiring the adoption of new business strategies to adapt.
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He stated that Nigeria’s downstream energy sector, valued at approximately N1.2 trillion ($3 billion), is expected to increase at a 5 per cent compound 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 stated. “A diverse playing field, where modular refineries, NNPC, Dangote Refinery, and independent marketers all operate freely, is essential for the sector’s health,” he added.
He stated that PETROAN encourages domestic refining to reduce dependency on imports, which are more vulnerable to global price shocks.
Gillis-Harry revealed that PETROAN has adopted a proactive approach to promoting price stability and consumer protection, and that the association has made policy proposals to decrease price volatility, which he believes might destabilise the economy and discourage investment.
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While applauding the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its efforts to improve openness and competitiveness, he called for continued collaboration to boost market supervision and stop price manipulation.
The PETROAN president emphasised the need for fair access to supply and distribution networks, adding that without that, independent retailers could be edged out of the market by larger players.
He argued that enabling independent marketers to compete would foster innovation, improve customer service, and result in more competitive pricing.
He noted new business trends resulting from deregulation, such as integrated refining and retail chains, smart fuel stations, and on-demand fuel delivery.
According to him, digital technology, automation, and mobile apps were now being used to boost efficiency and consumer engagement.
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He stressed that diversification was becoming increasingly important in downstream operations, as more outlets have expanded to offer LPG, CNG, and EV charging, with some stations powered by solar energy to minimise operational costs.
On policy, Gillis-Harry stated that clear and digitised licensing regimes were critical to lowering entry barriers for small players. He advocated anti-monopoly safeguards, import liberalisation, and public-private partnerships to rehabilitate roads, pipelines, and ports essential for petroleum delivery.
He noted major issues such as port congestion, pipeline vandalism, poor road networks, and storage limitations as barriers to effective fuel supply.
The PETROAN president called for increased stakeholder collaboration and consumer protection measures that strike a balance between open market principles and fair pricing.
He stated that the downstream sector’s future would be defined by regional hubs, modular refineries, blockchain-based transparency tools, and smart logistics systems powered by artificial intelligence.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
