PETROAN: Petrol Retailers Suffered N9bn Losses, Reduced Margins in 2025 over Dangote-Importers’ Price Wars

• Wants product importation to remain in 2026

•Raises lapses in naira-for-crude policy implementation

•Re-echoes call for privatisation of PH, Warri, Kaduna refineries

Peter Uzoho

Oil and gas downstream operators under the aegis of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN)

incurred an estimated N9 billion losses and slashed profit margins in 2025 due to the price wars between Dangote Refinery and importers.

They claimed that the price wars led to frequent adjustments of petrol pump prices, which adversely affected their business and discouraged new investments in the sector.

National President of PETROAN, Dr. Billy Grillis-Harry, disclosed this figure in a short text to THISDAY, in response to enquiries.

The association had in its review of Nigeria’s petroleum sector activities for 2025, which was obtained by THISDAY, claimed that without exactitude, its members lost billions of Naira as a result of the price wars between local refineries and importers during which pump prices of petrol were frequently cut.

Throughout last year, Dangote was the only local refinery producing petrol and supplying to the domestic market while the big marketers were importing the product to complement and ensure sustained availability and alternative supply source.

“The downstream sector experienced intense price competition between petroleum importers and local refiners. This price war led to frequent pump price adjustments resulting to loses of billions of naira to our members, market uncertainty, and reduced margins for retail outlet operators.

“While short-term consumer relief was observed, long-term sustainability and investment confidence were negatively affected”, the document jointly signed by the PETROAN president, Grillis-Harry and the National Public Relations Officer, Dr. Joseph Obele, stated.

But in his response to THISDAY on the exact amount lost, Grillis-Harry said, “Approximately 9,030,000,000. Estimated.”

Also, in its prospects and recommendations for the downstream sector for 2026, PETROAN advocated continuation of importation of petrol, saying specifically that the window for petroleum importation should remain open.

According to the association, the idea is to maintain import flexibility to guarantee an uninterrupted supply during refinery maintenance or shutdowns.

The group praised the introduction of the Naira-for-Crude policy as a measure to reduce pressure on foreign exchange demand and support domestic refining by allowing crude oil allocated to local refineries to be paid for in naira instead of dollars.

It said volume supplied in 2025 was approximately 250,000 – 300,000 barrels per day of crude, which were allocated to domestic refineries under this policy.

However, PETROAN flagged some gaps in the implementation of the policy, saying delays and inconsistencies in crude allocation affected refinery operations.

It added that some refiners reported that the naira pricing mechanism did not align with international crude price fluctuations, affecting profitability.

PETROAN observed that while the Naira-for-Crude policy has strategic potential for stabilising the downstream sector, its effectiveness in 2025 was constrained by operational and regulatory challenges.

It suggested that strengthening transparency, timely allocation, and pricing alignment was critical for maximising the benefits of the policy in 2026.

Overall, it noted that the year 2025 was a defining period for Nigeria’s petroleum sector, shaped by regulatory reforms, refinery development efforts, pricing realignments, leadership changes, and heightened competition within the downstream market.

With more refineries nearing completion and improved import coordination, the retail operators believe 2026 is expected to witness better product availability.

However, they clarified that affordability would depend largely on exchange rate stability, crude supply consistency, and regulatory balance.

PETROAN projected that rising fuel costs and energy transition policies were expected to accelerate the adoption of compressed natural gas (CNG), liquefied petroleum gas (LPG), solar, and other renewable energy solutions, helping to reduce pressure on petroleum demand.

It forecasted that petroleum pricing would continue to influence inflation trends in 2026, adding that stable supply, moderated prices, and improved logistics efficiency could help ease inflationary pressures across the economy.

The retail outlet owners further projected that healthy competition between importers and local refiners, supported by fair regulation, was expected to stabilise average pump prices.

PETROAN strongly advocated for policies that prevent monopolistic behaviour while encouraging efficiency and investment.

On the recommendation side, the association re-echoed calls to expedite the privatisation of Port Harcourt, Warri, and Kaduna refineries to improve operational efficiency and attract private investment.

It said regulators must ensure a steady and adequate crude supply to domestic refineries to support production and reduce import dependence.

It called for healthy pricing competition rather than dirty price wars in the downstream sector, urging the regulators and players alike to promote fair competition while preventing manipulative pricing practices.

PETROAN urged the government to ensure that Port Harcourt Refinery commences production by the first quarter of 2026 and ensure the refinery is operational to provide additional domestic petroleum supply.

“These recommendations aim to stabilise supply, promote efficient domestic refining, ensure fair competition, and foster long-term sector growth in 2026 and beyond.

“Nigeria’s petroleum sector in 2025 reflected cautious recovery amid persistent structural challenges.

“With improving crude oil production, expanding refinery approvals, and regulatory reforms, 2026 presents an opportunity to consolidate gains, stabilise prices, and strengthen energy security, provided policies remain transparent, inclusive, and investor-friendly”, PETROAN stated.