The Major Energies Marketers Association of Nigeria (MEMAN) has called for a more structured domestic petroleum products distribution system to improve supply reliability, reduce costs and ensure fuel reaches consumers across the country efficiently.

The association said Nigeria’s expanding refining capacity must be supported by better coordination of product supply, storage, transportation and distribution to prevent logistic challenges from undermining the benefits of local production.

MEMAN Executive Secretary and Chief Executive Officer, Clement Isong, made the case in a presentation on structuring Nigeria’s domestic market distribution framework on Thursday.

The proposal comes amid rising fuel prices, with petrol selling at an average of N1,378 per litre and automotive gas oil, commonly known as diesel, reaching N1,853 per litre in October 2026, according to figures presented by the association.

MEMAN said petrol prices increased by 33 per cent between January and October 2026, while diesel prices rose by 36 per cent.

The association highlighted diesel’s wider economic impact because it powers trucks transporting petroleum products and supports agriculture, construction, manufacturing and other essential activities.

Higher diesel costs also increase the expense of moving petrol from refineries and depots to filling stations, adding pressure to the overall cost of supplying the product.

MEMAN said Nigeria’s fuel price challenge therefore extends beyond the international cost of petroleum products to include foreign exchange, shipping, financing, transportation, regulatory charges and distribution expenses.

Local refining should lead supply

The association proposed that domestic refineries should become a major source of petroleum products as their output becomes commercially available, with imports used when local production cannot meet demand.

It said supply planning should take account of refinery output, product specifications, storage capacity and the ability to evacuate products to different parts of the country.

Where imports are necessary to bridge supply gaps, MEMAN proposed competitive tendering based on the lowest evaluated cost to support transparent procurement and more cost-effective sourcing.

The association also identified coordination between refineries, depots, transporters and marketers as essential to reducing delays and unnecessary logistics expenses.

It noted that increasing the volume of fuel produced locally would not, on its own, guarantee efficient distribution without the infrastructure and commercial arrangements needed to move products to consumers.

Push for predictable pricing and supply contracts

MEMAN also called for clearer pricing arrangements and more predictable bulk supply agreements to help marketers plan purchases, manage inventories and control the risks associated with sudden price changes.

Under the proposed framework, supply contracts should clearly state the volume of products available, pricing methods, delivery schedules, payment terms, product quality requirements and responsibilities of the parties involved.

The association said suppliers, depot operators, transporters and purchasers should coordinate deliveries with available storage and evacuation capacity to minimise operational delays.

It added that improved visibility into product costs and distribution expenses would help businesses make better procurement decisions and plan deliveries more effectively.

The presentation also identified the need to monitor product stocks across refineries, terminals and depots, track deliveries and identify regional supply gaps before they develop into wider disruptions.

MEMAN proposed using digital systems to improve inventory reporting, product tracking and coordination across the supply chain.

It also highlighted the importance of contingency arrangements for refinery outages, transportation disruptions and unexpected changes in demand.

Focus on supply security and consumer protection

The proposed framework places emphasis on ensuring that petroleum products reach consumers in the correct quantity and quality, with reliable service and safe handling throughout the distribution chain.

MEMAN said effective distribution should include product testing, accurate measurement, volume reconciliation and systems for detecting discrepancies and preventing losses.

The association also identified automation and transparent transactions as ways to strengthen accountability and improve customer service.

It said Nigeria’s domestic petroleum market needs a distribution system that connects supply sources to consumers through efficient infrastructure, clear commercial arrangements and coordinated operations.

As local refining expands, the effectiveness of these arrangements will play an important role in determining how reliably and efficiently petroleum products reach markets across the country.