PETROAN’s Call for Refinery Privatization and Support for Oil Marketers

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to take decisive steps to revitalize Nigeria’s oil and gas downstream sector.

In a statement titled “PETROAN’s Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024”, the association outlined critical recommendations to boost efficiency, protect businesses, and secure the nation’s energy future.

Among PETROAN’s key recommendations is the privatization of state-owned refineries, such as the Warri and Kaduna refineries. The association proposed transferring ownership to reputable private companies to improve operational efficiency and reduce the financial burden on the government.

“Privatizing these refineries will not only enhance their performance but also help the government focus its resources on other pressing needs,” the statement emphasized.

To address the economic challenges faced by oil marketers following the removal of the fuel subsidy, PETROAN appealed to President Bola Tinubu for a ₦100 billion grant. This funding, the group argued, is crucial to preventing the closure of over 10,000 businesses and the potential loss of thousands of jobs.

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The association also called for enhanced collaboration with neighboring countries to curb the smuggling of petroleum products. PETROAN recommended the implementation of digital tracking systems to monitor the movement of products from refineries to retail outlets, ensuring accountability and reducing leakages.

Highlighting the importance of self-reliance in the petroleum sector, PETROAN urged the government to prioritize the supply of crude oil to local refineries. According to the association, this measure would bolster Nigeria’s refining capacity, reduce dependency on imports, and ultimately strengthen the nation’s energy security.

“By ensuring local refineries have access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security,” PETROAN stated.

Since the removal of the fuel subsidy in May 2023, fuel prices have skyrocketed from approximately ₦170 per liter to nearly ₦1,000 in some regions. This surge has placed significant strain on businesses and consumers alike. To address this, PETROAN advocated for a competitive market environment by encouraging new entrants, promoting fair competition, and ensuring transparent pricing mechanisms.