The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to consider privatizing state-owned refineries and has requested a ₦100 billion grant from President Bola Tinubu to support oil marketers in maintaining their operations.
In a statement released on Saturday, titled PETROAN’S Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024, the association highlighted several significant developments in the sector over the past year.
However, it advocated for the privatization of Nigerian-owned refineries, including the Warri and Kaduna refineries, to reputable private entities to enhance efficiency and decrease government expenditures.
In a statement co-signed by its President Billy Gillis-Harry, National Secretary Adedibu Aderibigbe, and Spokesman Joseph Obele, PETROAN emphasized that the grant request aims to prevent the closure of oil marketers’ businesses.
This initiative is intended to avert the shutdown of approximately 10,000 marketers’ operations, responding to the potential job losses that could arise from the elimination of the fuel subsidy.
‘Unlock the full Potential’
The association called on authorities to work with “neighbouring countries to strengthen border security and prevent smuggling, and also utilize digital tracking systems to monitor petroleum products from refineries to retail outlets”.
“To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries,” the statement read.
“This strategic move will have a positive impact on the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security.”
Since the removal of fuel subsidy in May 2023, the cost of the essential commodity has moved from around ₦170 to about ₦1,000 in several parts of the country.
But PETROAN wants a “competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing”.