By Katherine Abayomi
The Federal Government’s decision to impose a 15 percent import duty on petrol and diesel has continued to generate mixed reactions across the oil and gas industry. While the policy aims to protect local refineries and promote energy security, stakeholders have warned of potential short-term economic disruptions.
National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Harry, described the move as a “strategic step toward self-sufficiency,” noting that it would encourage investment in local refining and reduce Nigeria’s dependence on imported petroleum products.
According to him, “the benefits of this policy include increased local refinery capacity, reduced reliance on imports, improved price stability, enhanced energy security, and a boost to the national economy.” He added that the initiative could also strengthen the naira, improve foreign reserves, and attract foreign investors to the sector.
Dr. Harry, however, cautioned that the policy could lead to temporary challenges, including a potential rise in fuel prices and possible job losses among importing firms.
Despite these concerns, he maintained that “the long-term benefits of the policy far outweigh its disadvantages.”
He further urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to remain vigilant to prevent monopoly in the sector.
According to him, “if local refineries are not properly regulated, monopoly tendencies could emerge, harming both the market and consumers.”
The PETROAN President also appealed to petroleum importers to “look inward” and begin to patronize domestic refineries, emphasizing that their role as a price check mechanism in the market should not be lost.
He called on the Nigerian National Petroleum Company Limited (NNPC) to ensure the adequate supply of crude oil to domestic refineries to make the policy effective.
Responding to the development, NNPC Group Chief Executive Officer, Bayo Ojulari, said the new import duty policy has further motivated the company to seek private partnerships for the management of Nigeria’s four government-owned refineries.
Ojulari explained that the NNPC is in talks with technical equity partners to help revive the long-dormant refineries, which have remained largely inactive despite years of heavy investment.
He described the initiative as “crucial to Nigeria’s long-term energy security” and a potential game-changer that could transform the country from a net importer to an exporter of refined petroleum products.
Dr. Harry, meanwhile, urged the NNPC to expedite its partnership negotiations and ensure the refineries commence full operations before December to prevent any fuel scarcity or price surge during the Yuletide season.
