PETROAN Says Steady Crude Supply Will Help Reduce Fuel Prices

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government and regulators to ensure consistent crude supply to domestic refineries and maintain stable pricing mechanisms to help reduce fuel prices in 2026.

In its 2026 outlook, signed by National President Billy Gillis-Harry and spokesman Joseph Obele, PETROAN said irregular crude allocation, pipeline disruptions, and fluctuating prices have continued to challenge retail operators, creating market uncertainty and squeezing profit margins.

“Providing a steady and adequate crude supply to domestic refineries is crucial for production and for reducing dependence on imports. Without this, pump prices will remain high, and retail operators will continue to incur losses,” the association stated.

PETROAN noted that the naira-for-crude policy—which allows refineries to pay for crude in naira instead of dollars—has strategic potential but faced implementation gaps last year. “Delays, pricing disputes, and inconsistent allocations limited the policy’s effectiveness. Strengthening transparency and timely crude allocation will be critical to maximise its benefits in 2026,” the association added.

The group also highlighted the intense competition between petroleum importers and local refiners in 2025, describing it as a price war that eroded profits for retail operators and created market uncertainty. “The downstream sector saw fierce price competition between importers and local refineries, resulting in frequent pump price changes that caused billions of naira in losses, reduced margins for operators, and weakened investment confidence,” PETROAN said.

On domestic refining, the association welcomed the approval of more than 30 private refineries, including 23 under construction, which together could add over 850,000 barrels per day to Nigeria’s refining capacity. “These projects, combined with the Dangote Petroleum Refinery, will significantly reduce import dependence and strengthen domestic production,” PETROAN said.

The association emphasised that improving crude supply, securing pipelines, and promoting fair competition are key to stabilising pump prices and boosting investor confidence. “Stable crude allocation, predictable pricing, and robust regulatory oversight are essential for protecting consumers and ensuring long-term sector growth,” it added.

Looking ahead, PETROAN urged policymakers to maintain import flexibility to ensure uninterrupted supply, support alternative energy sources such as CNG, LPG, and solar, and foster continuous engagement with regulators, refiners, and retail operators. The association concluded that affordable and sustainable fuel prices in 2026 will require a balanced approach combining domestic refining, fair pricing, and reliable supply.