Calls to Restart Operations at Public Refineries
The federal government has been urged to resume commercial activities at Nigeria’s public refineries in response to growing concerns over fuel sales denominated in U.S. dollars. This appeal was made by the Petroleum Products Retail Store Owners Association of Nigeria (PETROAN) during a statement on Wednesday.
PETROAN Advocates for Comprehensive Refinery Operations
PETROAN is advocating for immediate, full-scale production at all government-owned refineries, highlighting their role as crucial mechanisms for price regulation against market manipulation. According to Joseph Oberle, the association’s National Public Relations Officer, the continued operation of these refineries is essential for promoting a healthy competitive landscape within Nigeria’s oil sector.
Concerns Over Market Exploitation and Pricing
Billy Gillis-Harry, PETROAN’s National Chairman, expressed support for a deregulated oil market, asserting that while respecting the commercial rights of operators, the recent decision by Dangote Oil Refinery to sell petroleum products in dollars underscores the pressing need for multiple functional refineries. This shift aims to enhance competition, safeguard consumers, and fortify Nigeria’s energy security.
Financial Implications for Marketers and Consumers
The association raised alarms over the financial strain on marketers, who primarily earn in naira but must access foreign currency to purchase fuel. This dependency can lead to increased operational costs and heightened exchange rate vulnerabilities, further stressing the retail fuel market. The rising dollar sales are already exerting pressure on the naira in both official and black markets.
Call for Immediate Commissioning of Refineries
PETROAN emphasized that the swift commissioning of the Port Harcourt, Warri, and Kaduna refineries would act as an effective buffer against inflated pricing and market exploitation. They believe that operational public refineries would not only stabilize petroleum prices but also alleviate currency pressures by raising local refining capabilities.
Temporarily Reviving Local Production
In light of these challenges, PETROAN has urged NNPCL Group Chief Executive Officer Bayo Ojulari to instruct management to resume temporary operations at government-owned refineries. This measure aims to bolster fuel supplies, mitigate price volatility, and provide essential relief to consumers until a technical partnership agreement is finalized. The last operational phase for these refineries concluded in May 2025.
Long-Term Vision for a Competitive Refinery Sector
PETROAN contends that Nigeria’s energy security cannot rely solely on a single refinery, irrespective of its capacity. The association advocates for a resilient petroleum sector comprising both public and private refineries operating competitively within the same market framework. They call on the government to expedite the rehabilitation and commercialization of the Port Harcourt, Warri, and Kaduna facilities.
