Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Petroleum Products Retail Outlets Owners Association of Nigeria has issued a stark warning to the Federal Government, urging the immediate resumption of operations at the nation's government-owned refineries to stabilise fuel prices, promote competition, and prevent Nigeria's downstream petroleum sector from falling under the dominance of a single supplier. The association made the call on Wednesday, July 15, 2026, in a statement signed by its National Public Relations Officer, Dr. Joseph Obele, conveying the position of PETROAN President, Dr. Billy Gillis-Harry. The intervention comes just days after Dangote Petroleum Refinery transitioned its gantry sales to a dollar-based pricing framework, a move that PETROAN says has exposed the urgent need for multiple operational refineries to protect consumers and strengthen Nigeria's energy security.
PETROAN argued that bringing the Port Harcourt, Warri and Kaduna refineries back into operation would serve as an effective price-check mechanism against excessive pricing and market exploitation, while increasing domestic fuel supply and reducing dependence on a single supplier in the downstream petroleum market. The association emphasised that while it respects the principles of a deregulated petroleum market and the commercial rights of all refinery operators, a downstream market with only one dominant supplier exposes marketers and consumers to sudden pricing decisions that could significantly affect pump prices nationwide.
The association's concern is rooted in the recent decision by Dangote Petroleum Refinery to end naira-denominated pricing for Premium Motor Spirit, fixing its ex-depot price at $0.779 per litre under a new dollar-based pricing framework. PETROAN warned that marketers, who generate revenue in naira, 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. According to the association, every fluctuation in the exchange rate becomes a fluctuation in pump prices, and every scarcity of foreign exchange becomes a scarcity of fuel.
Against this backdrop, PETROAN called on the Group Chief Executive Officer of NNPCL, Engr. Bayo Ojulari, to direct the company's management to resume temporary operations at the government-owned refineries while discussions with two prospective Chinese technical partners continue. The association recalled that the refineries were operational before they were shut down in May 2025, adding that temporary production would immediately increase domestic fuel supply, moderate price volatility, and provide relief to consumers pending the conclusion of the proposed technical partnership arrangements. NNPCL signed a Memorandum of Understanding with two Chinese companies in April 2026 as part of efforts to restart and expand the Warri and Port Harcourt refineries.
PETROAN maintained that Nigeria's long-term energy security cannot depend on one refinery alone, irrespective of its production capacity, stressing that a resilient petroleum sector requires both public and private refineries operating competitively within the same market. The association outlined five critical benefits of operational government-owned refineries: serving as an effective price-check mechanism against excessive pricing and market exploitation; creating healthy competition among domestic refineries; reducing the demand for foreign exchange by increasing local refining capacity and strengthening the naira; enhancing Nigeria's energy security by guaranteeing reliable product supply and reducing dependence on a single supplier; and improving public confidence in Nigeria's refining capacity while stimulating economic activities and protecting jobs.
The association further urged the Federal Government to accelerate the rehabilitation and full commercial operation of the Port Harcourt, Warri and Kaduna refineries, 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 the country. PETROAN reaffirmed its commitment to supporting reforms that promote transparency, competition, investment, energy security, and affordable petroleum products for Nigerians.
The call from PETROAN comes amid growing concerns over the viability of Nigeria's downstream sector following the Dangote refinery's dollar pricing shift. The Port Harcourt Refinery, which was reopened in November 2024 after years of inactivity as part of a rehabilitation programme, was shut down once more in May 2025 due to operational difficulties. The Warri and Kaduna refineries have also remained largely non-operational, raising concerns among industry participants and stakeholders. The Federal Government has previously awarded contracts valued at about $1.56 billion for the Port Harcourt Refining Company, $740.7 million for the Kaduna Refining and Petrochemical Company, and $492.3 million for the Warri Refining and Petrochemical Company. Despite these investments, the facilities have continued to face operational challenges, prompting PETROAN to renew its demand for urgent action.
As the debate over Nigeria's refining capacity intensifies, PETROAN's message is clear: a downstream market with only one dominant supplier is unsustainable. The association has warned that without immediate intervention to restart government-owned refineries, Nigerian consumers could face higher fuel prices and increased exposure to foreign exchange volatility. With the 2026 fiscal year already underway and the downstream sector undergoing significant changes, the ball is now in the court of the Federal Government and NNPCL to demonstrate their commitment to energy security and market competition. For millions of Nigerians who depend on affordable fuel for their livelihoods, the stakes could not be higher.
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