Petroleum marketers, refiners, and depot operators in Nigeria have renewed their call for full deregulation of the downstream oil sector, urging the government to eliminate price controls and end subsidies on petroleum products.
The appeal was made during a webinar on Wednesday, organized by the Major Oil Marketers Association of Nigeria (MOMAN), in collaboration with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Crude Oil Refiners Association of Nigeria (CORAN), African Refiners and Distributors Association (ARDA), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The event, themed “Optimizing the Nigerian Oil and Gas Industry,” brought together key players in the industry to discuss ways to improve efficiency, tackle challenges, and explore opportunities in the sector.
In a communique issued by MOMAN, stakeholders highlighted the pressing need for a fully market-driven pricing system to replace government controls. They emphasized that complete deregulation is critical for promoting competition, improving operational efficiency, and ensuring product availability.
“A competitive and market-driven pricing mechanism was seen as crucial for improving the industry’s efficiency. The removal of government controls on petroleum pricing was identified as key to fostering a dynamic and responsive sector,” the communique noted.
Participants also stressed the importance of strengthening local refineries to reduce reliance on imported petroleum products, urging that marketers be allowed to source crude oil locally and internationally. They further advocated for refineries to enter into processing agreements with retail outlets.
The discussions also touched on the need to transition toward cleaner energy options like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), as part of efforts to promote sustainability in the oil and gas sector.
Additionally, stakeholders proposed the creation of a new committee structure within the petroleum industry, modeled after the Bankers’ Committee in Nigeria. This would include a Midstream and Downstream Industry Coordination Committee, led by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, to enhance sector-wide collaboration.
Other proposed bodies include an Industry Interface Committee to manage upstream and downstream interactions, and a Petroleum Industry Consultative Assembly, to be chaired by the Minister of State for Petroleum Resources (Oil), aimed at fostering dialogue among stakeholders across the oil and gas sector.
