By Obas Esiedesa, Abuja

Oil industry experts have stressed the need for multiple operators to ensure a fair and competitive downstream petroleum market in Nigeria.

Speaking at a one-day media roundtable in Abuja organised by Extractive360, the experts said increased participation would not only benefit consumers but also stimulate healthy competition in the sector.

Oil and gas governance expert, Mr. Henry Adigun said the sector must do everything to avoid the creation of a monopoly.

Adigun stated that the ongoing bickering between the oil marketers and the Dangote Refinery was unhealthy and could lead to loss of confidence from investors.

He argued that the continuing importation of premium motor spirit, also known as petrol, was good for the sector as it ensured competition.

“Without any other refinery in the country to compete with Dangote Refinery, imported petrol provides that and it ensures that there is no price gorging”, he added.

On her part, industry lawyer, Olasubomi Chuku, explained that the Petroleum Industry Act envisaged a competitive market for the downstream.

Chuku pointed out that a “competitive market is an open, free market with multiple participants who operate independently and contend for their share of the market. A competitive market is accessible, devoid of monopoly and driven by free market forces”.

Speaking earlier, the Executive Director, Extractive360, Mrs Juliet Ukanwosu said the downstream sector is currently facing uncertainty due to frequent pump price changes.

She said the roundtable was organised to provide some clarity and new insights which journalists can use to enlighten the general public.

“This conversation is particularly crucial today because the downstream sector remains a vital pillar of Nigeria’s oil and gas industry — directly influencing the availability, pricing, and distribution of petroleum products, as well as impacting the daily lives of citizens and the broader economy.

“We have observed, in recent times, the Nigerian petroleum downstream sector is navigating a turbulent phase marked by a combination of opportunities and pressures. Since the removal of fuel subsidies, market forces have largely determined pump prices, triggering intense competition — often described as a price war — among operators. This has led to fluctuating product prices, sometimes creating uncertainty for both businesses and consumers.

“In addition, challenges such as high operating costs, irregular foreign exchange rates, import dependency for refined products, and infrastructural bottlenecks have added strain to the sector.”

She however noted that “On the positive side, the liberalization policy has opened space for more private sector participation, investment in storage and distribution infrastructure, and conversations around refining capacity expansion.

“Overall, the sector is in a state of adjustment — seeking stability and competitiveness amid shifting regulations, volatile market dynamics, and evolving public expectations”.