The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has made yet another passionate appeal to the Federal Government, calling for immediate and sweeping reforms in Nigeria’s downstream oil sector. Among their demands is a ₦100 billion grant from President Bola Tinubu to cushion the blow on oil marketers struggling to survive in the face of rising fuel prices and the subsidy removal issue. The association also boldly recommended the privatization of the country’s notoriously inefficient state-owned refineries, such as the Warri and Kaduna refineries, suggesting that they be handed over to reputable private entities to enhance efficiency and slash government spending.
In a statement signed by PETROAN President Billy Gillis-Harry, National Secretary Adedibu Aderibigbe, and Spokesman Joseph Obele, the association emphasized that the requested grant is critical to saving the businesses of over 10,000 marketers who are teetering on the brink of collapse. “This measure is necessary to prevent widespread job losses and ensure the survival of marketers affected by the removal of the fuel subsidy,” the statement declared.
Since the contentious removal of the fuel subsidy in May 2023, Nigerians have been struggling with rising fuel prices that have surged from ₦170 per liter to nearly ₦1,000 in some regions. PETROAN proposed a long-term strategy to reform the oil sector. The group called for a competitive market environment to encourage new entrants and prevent monopolies, which they believe will ensure fair pricing for Nigerians.
Privatizing refineries sounds wonderful, but, instead of fixing them, the solution is to sell them off. The association is also pushing for crude oil to be made readily available to local refineries. “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. A good suggestion, but why hasn’t this been the priority all along?
PETROAN’s statement also touched on the issue of smuggling, urging the government to collaborate with neighboring countries to enhance border security and deploy digital tracking systems to monitor the movement of petroleum products from refineries to retail outlets. Again, a sensible idea.
The association did not shy away from pointing out the obvious benefits of prioritizing local refineries. “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,” the statement claimed.
As Nigerians continue to queue at filling stations and struggle with the economic hardship brought on by soaring fuel prices, PETROAN’s recommendations present a blueprint for change. The ball is firmly in President Tinubu’s court.
