The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government and regulators to ensure steady crude supply to domestic refineries and implement consistent pricing mechanisms to stabilise fuel prices in 2026.
In its 2026 industry outlook, signed by National President Billy Gillis-Harry and spokesman Joseph Obele, PETROAN highlighted that irregular crude allocation, pipeline disruptions, and price fluctuations have continued to hit retail operators hard, leading to market uncertainty and shrinking profit margins.
“Ensuring a steady and adequate crude supply to domestic refineries is essential to support production and reduce reliance on imports. Without it, pump prices will remain high, and retail operators will continue to face losses,” the association stated.
PETROAN noted that the naira-for-crude policy—allowing refineries to pay for crude in naira rather than dollars—had strategic potential but faced implementation challenges in 2025, including delays, pricing disputes, and inconsistent allocations. The association called for greater transparency and timely execution of the policy to maximise its benefits in the coming year.
The association also pointed to intense price competition between petroleum importers and local refiners in 2025, describing it as a “price war” that eroded profits for retail operators while creating uncertainty in the market.
On a positive note, PETROAN welcomed the approval of over 30 private refineries, including 23 under construction, which could add over 850,000 barrels per day to Nigeria’s domestic refining capacity. These projects are expected to complement the Dangote Petroleum Refinery and reduce reliance on imported fuel.
Looking ahead, PETROAN emphasised that improving crude supply, strengthening pipeline security, and fostering fair competition are crucial for stabilising pump prices and boosting investment confidence. The association also called for continued import flexibility, promotion of alternative energy sources such as CNG, LPG, and solar, and consistent engagement among regulators, refiners, and retail operators.
“Achieving affordable and sustainable fuel prices in 2026 will depend on a balanced approach that combines domestic refining, fair pricing, and supply security,” PETROAN concluded.
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