The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged regulators to sustain the issuance of petrol import licences to qualified marketers, arguing that broader participation in fuel supply would strengthen competition and help moderate prices across the downstream petroleum market.
The call comes as Nigeria records a gradual increase in petrol imports despite rising domestic supply from the 650,000-barrel-per-day Dangote Petroleum Refinery, according to market reports and regulatory data.
PETROAN President, Billy Gillis-Harry, said maintaining access to import licences remains important for ensuring adequate product availability and preventing excessive market concentration. According to him, a competitive supply environment would encourage more efficient pricing and provide consumers with greater benefits.
The appeal follows a policy shift by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which had earlier tightened access to petrol import permits before subsequently allowing broader participation in the market.
Recent NMDPRA data cited by Argus Media showed that petrol imports rose to about 5.9 million litres per day in May, representing a 59 percent increase from April levels. Imported volumes accounted for approximately 12 percent of total domestic supply during the month, compared with 8 percent a month earlier.
The increase in imports comes at a time when fuel marketers continue to grapple with elevated retail prices and volatile market conditions.
Industry stakeholders have linked recent pricing pressures partly to disruptions in global supply chains and geopolitical developments affecting crude oil and refined product markets.
Speaking recently on market conditions, former chairman of the Major Energies Marketers Association of Nigeria (MEMAN), Olumide Adeosun, said many marketers have faced significant commercial challenges from recent fuel price increases.
According to findings from an industry survey cited by Adeosun, about 80 percent of marketers reported that rising prices had negatively affected their businesses, while a number of operators had suspended trading activities.
The developments have unfolded alongside continued adjustments in ex-depot pricing by Dangote Refinery.
Last week, the refinery reduced its petrol loading price to ₦1,175 per litre, prompting competing depot operators and importers to lower their own prices in an effort to remain competitive.
However, market participants argue that fuel prices remain relatively high despite recent reductions.
NMDPRA data showed that average petrol retail prices in Lagos stood at ₦1,317 per litre in May, significantly above levels recorded earlier in the year. During the same period, national petrol consumption declined, suggesting that higher prices may be affecting demand.
Meanwhile, regulatory data indicate that Dangote Refinery supplied about 41.5 million litres of petrol daily to the domestic market in May, representing a slight increase from April levels.
However, overall petrol production at the refinery declined during the month despite higher crude processing volumes, according to NMDPRA figures.
Industry sources attributed the reduction partly to maintenance activities on key gasoline-producing units within the refinery, which affected output patterns.
Data reviewed by Argus also showed that the refinery increased its intake of third-party blending components during the period while suspending petrol exports, allowing more product to be directed toward the domestic market.
Market sources said operational adjustments have continued into June, with refinery managers focusing on blending activities and optimisation efforts aimed at sustaining fuel supply while maintenance work progresses.
The latest developments underscore the growing competition emerging in Nigeria's downstream petroleum sector as refiners, importers and depot operators compete for market share in a deregulated pricing environment.
PETROAN maintains that preserving multiple supply sources remains essential to achieving lower prices, stronger product availability and improved efficiency across the market.