The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned against monopolistic tendencies in the country’s downstream oil market, warning that unfair dominance by a few players could erode the gains of deregulation and distort healthy competition.
Speaking during 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.”
He emphasized that deregulation, while unlocking new opportunities, must not pave the way for monopolies that threaten smaller operators and stifle innovation.
According to Gillis-Harry, the removal of fuel subsidy in 2023 fundamentally transformed Nigeria’s energy landscape, introducing a market-driven pricing system that has reshaped the downstream oil market into a dynamic and competitive space.
He disclosed that the sector, valued at about N1.2 trillion (approximately $3 billion), is projected to expand at a compound annual growth rate of five per cent between 2025 and 2030.
“PETROAN has consistently warned against monopolistic practices, especially with the emergence of mega refineries and dominant importers,” Gillis-Harry said.
“A level playing field where modular refineries, the NNPC Limited, Dangote Refinery, and independent marketers coexist freely is critical to sustaining the health of the downstream oil market.”
Deregulation and Its Double-Edged Impact
The PETROAN president explained that while deregulation had increased transparency and improved supply chain efficiency, it had also exposed marketers to the true cost of operations, leaving many independent retailers struggling to maintain viable margins.
He said the new market realities demand smarter strategies and stronger policy support to safeguard independent businesses that form the backbone of the distribution network.
Gillis-Harry noted that independent outlets remain vital in rural and underserved communities, providing employment opportunities and stabilising local economies.
However, he warned that without equitable access to supply chains and distribution networks, smaller marketers could be pushed out by larger entities enjoying preferential deals.
“Without fair access to supply and distribution, independent retailers risk extinction,” he cautioned.
“This would not only harm competition but also reduce accessibility and affordability of petroleum products in remote areas.”
PETROAN’s Push for Price Stability and Consumer Protection
In response to these challenges, PETROAN has launched several policy advocacy initiatives aimed at ensuring price stability and protecting consumer interests.
Gillis-Harry revealed that the association had submitted policy proposals designed to curb excessive price volatility that could destabilize the economy or deter investment in the downstream oil market.
He added that promoting domestic refining initiatives remains a key focus for PETROAN, as local production can minimize reliance on imports and shield Nigeria from global price shocks.
Gillis-Harry commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its efforts to enhance transparency and enforce competitive standards but urged closer collaboration to prevent market manipulation and anti-competitive practices.
Technology and New Business Frontiers
According to Gillis-Harry, deregulation has triggered new business models and innovations within the downstream oil market, including integrated refining-to-retail operations, smart fuel stations, and on-demand fuel delivery services.
He said many operators are now adopting digital solutions such as mobile apps, automation, and data analytics to improve efficiency, enhance customer experience, and streamline inventory management.
“Diversification has become central to downstream operations,” he added.
“More filling stations are expanding into LPG, CNG, and EV charging points, while others are using solar power to reduce operating costs.”
Infrastructure, Access, and Policy Reforms
Highlighting critical bottlenecks in the supply chain, the PETROAN president identified port congestion, pipeline vandalism, poor road infrastructure, and inadequate storage capacity as key obstacles to the smooth functioning of the downstream oil market.
He called for urgent public-private partnerships to rehabilitate critical infrastructure such as roads, depots, and pipelines, stressing that such interventions would improve supply efficiency and reduce fuel scarcity.
On policy reforms, Gillis-Harry advocated for transparent, digital licensing systems to lower entry barriers for new investors.
He also urged the government to implement anti-monopoly safeguards, promote import liberalisation, and strengthen regulatory enforcement to maintain fair competition.
The Future of Nigeria’s Downstream Oil Market
Looking ahead, Gillis-Harry predicted that Nigeria’s downstream oil market would increasingly rely on technology-driven transparency, regional refining hubs, modular refinery networks, and artificial intelligence-powered logistics.
He said PETROAN is already engaging stakeholders to explore blockchain-based systems that can ensure traceability and curb product diversion.
“The future of downstream energy is open, competitive, and inclusive,” Gillis-Harry affirmed. “PETROAN remains committed to a market structure that rewards efficiency, guarantees consumer protection, and promotes innovation.”
He reiterated the association’s call for sustained collaboration among industry players, regulators, and investors to maintain the integrity of the downstream oil market and ensure fair pricing that benefits all Nigerians.
Sustaining Deregulation Gains
Industry experts at the conference echoed PETROAN’s position, stressing that Nigeria’s deregulated market can only thrive when competition is protected from monopolistic tendencies.
They noted that independent marketers play a crucial role in ensuring product availability, especially in non-urban areas, and must not be excluded from access to imported or refined products.
With the sector’s value expected to rise in the coming years, stakeholders believe that a fair and competitive downstream oil market will not only guarantee consumer satisfaction but also drive investment, job creation, and sustainable energy development in Nigeria.
As the nation continues to adapt to a post-subsidy era, PETROAN’s message remains clear: the strength of Nigeria’s downstream oil market lies in diversity, transparency, and fair competition — not monopoly.