Nigeria’s downstream petroleum sector is facing renewed uncertainty as the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to urgently revive the country’s state-owned refineries following Dangote Refinery’s decision to suspend naira-based sales and adopt dollar-denominated transactions. The move has sparked concerns among fuel marketers who fear higher operating costs and increased pressure on the already fragile foreign exchange market.
Speaking in Lagos, PETROAN National President, Dr. Billy Gillis-Harry, said the development highlights the urgent need for the Port Harcourt, Warri, and Kaduna refineries to return to operation. According to him, relying heavily on a single refinery, regardless of its production capacity, poses significant risks to Nigeria’s energy security. He stressed that functional government-owned refineries would encourage healthy competition, stabilize prices, and provide consumers with greater protection against market volatility.
Dangote Refinery recently introduced new dollar-based pricing after challenges surrounding the federal government’s naira-for-crude arrangement. Under the revised pricing structure, petrol is sold at $0.779 per litre, diesel at $1.087 per litre, and aviation fuel at $0.942 per litre. While fuel prices at major retail outlets have remained largely unchanged for now, industry stakeholders worry that marketers, who earn revenue in naira, may struggle to source the foreign exchange needed to purchase products, potentially leading to increased costs across the supply chain.
Gillis-Harry appealed to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Engr. Bayo Ojulari, to facilitate the temporary resumption of operations at the three government-owned refineries while discussions with prospective Chinese technical partners continue. He argued that restarting local refining activities would boost domestic fuel supply, reduce dependence on a single source, ease pressure on foreign exchange demand, and provide relief to consumers facing economic hardship.
Meanwhile, energy experts are urging the Federal Government to strengthen the crude-for-naira policy and ensure domestic refineries receive adequate crude oil allocations. The call comes as global oil prices continue to rise amid growing geopolitical tensions and supply concerns, with Brent crude climbing to around $85 per barrel. Analysts warn that ongoing disruptions in global energy markets could further increase fuel costs, making the revival of Nigeria’s refineries even more critical for ensuring stable supply, protecting consumers, and safeguarding the nation’s long-term energy future.
source: dailytrust
