The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to urgently restore the country’s state-owned refineries to commercial operation, saying increased competition among refiners is essential for stable fuel prices and improved energy security.
The association said reviving the Port Harcourt, Warri and Kaduna refineries would reduce Nigeria’s reliance on a single refining source, strengthen the downstream petroleum market and help cushion consumers against exchange rate fluctuations.
Speaking in a statement on Wednesday, PETROAN President, Dr. Billy Gillis-Harry, reaffirmed the association’s support for the deregulation of Nigeria’s downstream petroleum sector but warned that the market should not become overly dependent on the pricing decisions of any single refinery.
According to him, the recent decision by the Dangote Petroleum Refinery to price petroleum products in United States dollars highlighted the risks associated with a market dominated by one supplier. He noted that petroleum marketers generate their revenue in naira and would face significant foreign exchange challenges if compelled to purchase refined products in dollars, a situation that could ultimately drive up pump prices.
Gillis-Harry stressed that while Dangote Refinery has the commercial right to determine its pricing structure, Nigeria requires a diversified refining industry to protect consumers and the economy from supply disruptions and currency volatility.
Drawing comparisons with countries such as Mexico and Indonesia, he said global experience has shown that markets relying heavily on a single refining entity remain vulnerable to price instability. He added that genuine competition can only be achieved when several refiners operate simultaneously within the same market.
PETROAN therefore urged the Federal Government to temporarily restart operations at the Port Harcourt, Warri and Kaduna refineries while discussions on their long-term rehabilitation continue. The association described the move as a practical short-term solution that would complement broader reforms in the petroleum sector.
According to the association, even partial production from the government-owned facilities would increase fuel supply, moderate pricing behaviour and improve Nigeria’s energy security by diversifying domestic refining capacity.
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PETROAN listed several benefits of reviving the refineries, including creating a competitive pricing environment, reducing pressure on foreign exchange through increased local refining, strengthening national energy security and restoring investor confidence in Nigeria’s downstream petroleum industry.
The association also called on the Federal Government to guarantee adequate crude oil supply for all domestic refiners, including modular refinery operators, insisting that equitable access to feedstock is necessary to build a resilient and competitive refining sector.
Reaffirming its support for ongoing downstream reforms, PETROAN maintained that restoring Nigeria’s existing refineries remains the fastest and most practical step towards achieving a stable, competitive and affordable petroleum products market.
