Oil marketers have said the retail price of Premium Motor Spirit (PMS), popularly known as petrol, could fall to about N800 per litre if more operators are granted licences to import the product.

The marketers, under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), argued that expanding the number of licensed importers would promote healthy competition in the downstream petroleum sector and ultimately lead to lower pump prices for consumers.

The National Public Relations Officer of PETROAN, Joseph Obele, said the association was advocating wider participation in fuel importation to ensure that market forces determine petrol prices.

According to him, the current market structure limits competition, as only a few marketers have the capacity and approval to import petroleum products.

Obele explained that if more qualified marketers are licensed to import PMS and can access foreign exchange at competitive rates, Nigerians could begin to buy petrol at around N800 per litre, particularly with the decline in global crude oil prices and improvements in international refining margins.

He maintained that the deregulation of the downstream sector was designed to encourage competition rather than create a market dominated by a few operators.

The PETROAN spokesman said the association had consistently urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to grant import licences to more marketers, insisting that increased competition would improve product availability, eliminate supply disruptions and compel operators to sell at more competitive prices.

He noted that marketers should be free to source petroleum products from both local refineries, including the Dangote Petroleum Refinery, and the international market, depending on prevailing market conditions.

Obele added that allowing more participants into the import market would strengthen supply security, discourage monopolistic tendencies and ensure that consumers benefit from the full implementation of the deregulation policy.

He also called on the Federal Government to sustain policies that guarantee access to foreign exchange, regulatory transparency and a level playing field for all operators in the downstream sector.

According to him, the combination of lower international product prices, improved foreign exchange availability and increased competition among importers has the potential to significantly reduce the cost of petrol at filling stations across the country.