Petroleum marketers, represented by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have called on the Federal Government to privatize state-run refineries, encourage competition and improve transparency and accountability.
They also urged the government to invest in infrastructure to strengthen operations in the downstream oil sector.
In particular, traders called for the privatization of the Warri and Kaduna refineries, which currently have a combined capacity of 125,000 barrels per day.
They also emphasized the need for the government to enforce the development of local content, improve the effectiveness of Compressed Natural Gas (CNG) by 2025 and combat smuggling of petroleum products.
Additionally, oil marketers urged the government to prioritize improving access to crude oil for local refiners and recommended a N100 billion subsidy to support 10,000 businesses affected by the removal of fuel subsidy.
These recommendations were detailed in PETROAN's 2024 Outlook and 2025 Outlook document, released on Saturday in Abuja.
The report, signed by PETROAN National President, Billy Gillis-Harry, National Secretary Adedibu Aderibigbe and National Public Relations Officer, Dr. Joseph Obele, highlighted the importance of privatizing refineries to improve efficiency and reduce government spending .
PETROAN highlighted that privatization would foster a competitive market, encourage new entrants and create a level playing field to avoid monopolies and ensure fair prices.
The organization also called for a robust monitoring and evaluation framework to ensure compliance with regulatory standards and continued investment in infrastructure, such as refineries, pipelines and storage facilities, to reduce dependence on imported petroleum products.
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Marketers also advocated for greater support for local businesses and incentives for research and development in the downstream sector.
They urged the government to encourage private sector participation to increase access to finance and expertise, while reviewing regulatory frameworks to reduce operating costs and attract investment.
PETROAN also called for greater stakeholder engagement and awareness campaigns to promote CNG adoption, as well as collaboration with neighboring countries to prevent smuggling and improve border security. They also proposed the use of digital tracking systems to monitor petroleum products from refineries to points of sale.
In its report, PETROAN highlighted that prioritizing access to crude oil for local refiners would boost Nigeria's refining capacity and improve energy security.
Looking ahead to 2024, PETROAN recognized significant achievements in the sector, including market deregulation, construction of new infrastructure, rehabilitation of the Port Harcourt refinery and commissioning of the Dangote Refinery.
Marketers noted that Dangote Refinery's competitive pricing initially pressured NNPC Limited to adjust its pricing strategy, resulting in more stable and lower prices for consumers.
However, PETROAN also urged the government to address current challenges such as vandalism, inadequate infrastructure, limited number of CNG stations, inefficient distribution networks and high operating costs associated with the compression and transportation of natural gas. .
NIGERIAN TRIBUNE