Emmanuel OchayiOil marketers, under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have urged the Federal Government to privatise state-owned refineries to enhance efficiency and reduce government expenditure. In their 2024 retrospect and outlook for 2025 document, PETROAN emphasised the importance of privatising the Warri and Kaduna refineries, which have a combined capacity of 125,000 barrels per day.
According to PETROAN’s National President, Billy Gillis-Harry, and other officials, privatization will introduce competition, improve transparency, and ensure accountability in the downstream sector. They believe this move will foster a more competitive market, preventing monopolies and encouraging fair pricing.
Join our WhatsApp ChannelInvestment in CNG Infrastructure, says Oil Marketers
The oil marketers also called on the government to increase investment in Compressed Natural Gas (CNG) infrastructure. PETROAN highlighted the need for regulatory frameworks that reduce operational costs and attract investment.
READ ALSO: Oil Marketers Demand Clearer Path To Buy from Dangote Refinery As Petrol Price Soars
“Stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG,” the report stated, suggesting that private sector participation be encouraged to boost funding and expertise in the sector.
Oil Marketers urges Curbing Smuggling and Enhancing Security
PETROAN recommended collaborative efforts with neighboring countries to strengthen border security and prevent the smuggling of petroleum products. They also proposed the use of digital tracking systems to monitor petroleum products from refineries to retail outlets.
“Collaborate with neighbouring countries to strengthen border security and prevent smuggling,” the document advised. “Utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.”
N100 Billion Grant Request
To mitigate the effects of fuel subsidy removal, PETROAN requested a N100 billion grant from President Bola Tinubu. This grant is aimed at preventing the closure of 10,000 businesses within the marketing sector. The marketers emphasised the critical need for this financial support to avert potential job losses and economic downturn.
Achievements and Challenges in 2024
PETROAN highlighted several accomplishments in 2024, including the deregulation of the petroleum sector and the successful commencement of operations at the Dangote Refinery. They noted that the refinery’s competitive pricing put pressure on NNPC Limited, leading to more stable and lower prices for consumers.
However, challenges remain. The marketers called on the government to address issues such as vandalism, inadequate infrastructure, and the limited number of CNG stations and distribution networks. They also noted the high operating costs associated with compressing and transporting natural gas.
The oil marketers’ recommendations aim to consolidate gains in Nigeria’s downstream sector, improve efficiency, and secure the future of petroleum marketing businesses. Privatisation of refineries and increased investment in CNG infrastructure are seen as pivotal steps toward achieving these goals.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
