Yemisi Izuora
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to immediately commence full commercial production at all government-owned refineries, describing them as a critical price-check mechanism against market exploitation.
According to the National President of PETROAN, Dr. Billy Gillis-Harry, while the Association respects the principles of a deregulated petroleum market and the commercial rights of all refinery operators, the recent decision by Dangote Petroleum Refinery to sell petroleum products in United States dollars has further demonstrated the urgent need for multiple operational refineries to promote healthy competition, protect consumers, and strengthen Nigeria’s energy security.
PETROAN noted that a downstream market with only one dominant supplier exposes marketers and consumers to sudden pricing decisions that can significantly affect pump prices nationwide.
The Association expressed concern that marketers earn revenue in naira but may now be required to source foreign exchange to purchase petroleum products, thereby increasing operational costs, foreign exchange risks, and pressure on the retail market.
The Association emphasized that the immediate operation of the Port Harcourt, Warri, and Kaduna Refineries would provide an effective price-check mechanism against excessive pricing and market exploitation, encourage healthy competition among domestic refineries, stabilize petroleum product prices through multiple supply sources, reduce pressure on foreign exchange by increasing local refining capacity, and strengthen Nigeria’s energy security by ensuring uninterrupted product availability.
PETROAN therefore calls on the Group Chief Executive Officer of NNPCL, Engr. Bayo Ojulari, to direct the NNPCL management to resume temporary operations at the government-owned refineries while discussions with the two prospective Chinese technical partners continue. The Association recalls that the refineries were operational before their shutdown in May 2025 and believes that temporary production will immediately increase domestic fuel supply, moderate price volatility, and provide much-needed relief to Nigerian consumers pending the conclusion of the technical partnership arrangements.
The Association believes that Nigeria’s long-term energy security cannot depend on one refinery alone, irrespective of its production capacity. A resilient petroleum sector requires both public and private refineries operating competitively within the same market. PETROAN therefore urges the Federal Government to accelerate the rehabilitation and full commercial operation of the Port Harcourt, Warri, and Kaduna Refineries.
At this critical period, operational government-owned refineries will serve as an effective price-check mechanism against excessive pricing and market exploitation create healthy competition among domestic refineries, leading to more stable and affordable petroleum product prices and reduce the demand for foreign exchange by increasing local refining capacity and strengthening the naira.
The Association also said resumption of operation of the refineries would enhance Nigeria’s energy security by guaranteeing reliable product supply, reducing dependence on a single supplier, and minimizing the risk of supply disruptions and mprove public confidence in Nigeria’s refining capacity, stimulate economic activities, protect jobs, and support sustainable economic growth.
PETROAN further urges the Federal Government to ensure adequate crude oil supply to all domestic refineries, sustain policies that encourage competition, investment, and price stability in the downstream petroleum sector, and continue creating an enabling environment that encourages investment in additional modular and conventional refineries across Nigeria. The Association remains committed to supporting reforms that promote transparency, competition, investment, energy security, and affordable petroleum products for Nigerians, while reaffirming that multiple functional refineries remain the most effective and sustainable mechanism for preventing market distortions, protecting consumers, and driving economic growth.