Call for Privatization of State-Owned Refineries
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian government to privatize its state-controlled refineries. In a statement released on Saturday, under the title “PETROAN’S Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024,” the association highlighted significant advancements made in the oil sector over the past year. However, they specifically recommended the transfer of refineries like Warri and Kaduna to competent private entities to enhance operational efficiency and cut down on public expenditure.
Financial Aid to Prevent Business Collapse
The statement, endorsed by PETROAN President Billy Gillis-Harry, National Secretary Adedibu Aderibigbe, and Spokesman Joseph Obele, also included a plea for a ₦100 billion grant from President Bola Tinubu. This financial support is aimed at preventing the potential shutdown of approximately 10,000 oil marketing businesses, which are under threat due to the economic fallout from the fuel subsidy removal.
Strategic Recommendations for National Energy Security
PETROAN stressed the importance of securing local crude oil supplies for domestic refineries to bolster Nigeria’s refining capabilities and decrease dependency on imported fuel. They suggested measures like strengthening border security with neighboring countries to combat fuel smuggling and implementing digital tracking systems for petroleum products from refineries to retail points.
Economic Impact and Market Competition
Since the subsidy on fuel was lifted in May 2023, the price of petrol has escalated from about ₦170 to around ₦1,000 per litre in various regions. PETROAN is advocating for a competitive market environment that welcomes new players to level the playing field, prevent monopolistic tendencies, and ensure pricing fairness.
