PETROAN urges NNPCL to restart government refineries to stabilise fuel prices

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPCL) to resume operations at the government-owned refineries to stabilise fuel prices, promote competition, and strengthen the country’s energy security.

The association made the call on Wednesday in a statement signed by its National Public Relations Officer, Dr. Joseph Obele, conveying the position of PETROAN President, Dr. Billy Gillis-Harry.

PETROAN said bringing the Port Harcourt, Warri and Kaduna refineries back into operation would serve as an effective price-check mechanism while increasing domestic fuel supply and reducing dependence on a single supplier in the downstream petroleum market.

What PETROAN is saying

PETROAN said the immediate operation of the Port Harcourt, Warri and Kaduna refineries would provide an effective price-check mechanism and encourage healthy competition among domestic refineries.

The association also noted that the move will stabilise 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.

According to the association, while it supports the principles of a deregulated petroleum market and the commercial rights of all refinery operators, recent developments in the downstream sector have demonstrated the urgent need for multiple operational refineries to promote healthy competition and protect consumers.

• “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,” the statement read in part.

The association argued that a downstream market with only one dominant supplier exposes marketers and consumers to sudden pricing decisions that could significantly affect pump prices nationwide.

More insights

PETROAN also expressed concern 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.

• Against this backdrop, the association called on the Group Chief Executive Officer of NNPCL, 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.
• PETROAN 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.
• The association 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.

It 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 for investment in additional modular and conventional refineries across the country.

According to PETROAN, multiple functional refineries remain the most effective and sustainable mechanism for preventing market distortions, protecting consumers, strengthening energy security, and supporting sustainable economic growth.

Backstory

Dangote Petroleum Refinery has recently ended naira-denominated pricing for Premium Motor Spirit (PMS), commonly known as petrol, fixing its ex-depot price at $0.779 per litre under a new dollar-based pricing framework for refined petroleum products.

• The development was disclosed in a notice issued by the refinery to petroleum marketers and customers, announcing the transition from naira to United States dollar transactions for the sale of petrol, diesel and aviation fuel.
• At the prevailing official exchange rate of N1,380.50 to the US dollar, the new benchmark translates to approximately N1,075.61 per litre. However, unlike the previous fixed naira pricing, the ex-depot price in naira will now fluctuate in line with movements in the foreign exchange market.
• Under the new pricing schedule, petrol sold through the gantry will cost $0.779 per litre, Automotive Gas Oil (diesel) will sell for $1.087 per litre, while Aviation Turbine Kerosene (Jet A1) is priced at $0.942 per litre. The refinery also fixed the price of coastal petrol deliveries at $1,044.62 per metric tonne.

It, however, clarified that the transition does not apply to Liquefied Petroleum Gas (LPG), noting that LPG transactions will continue under the existing arrangement.

What you should know

NNPCL signed a Memorandum of Understanding (MoU) with two Chinese companies in April 2026 as part of efforts to restart and expand the Warri and Port Harcourt refineries.

• The agreement was executed in Jiaxing City, China, on April 30 and announced by the national oil company in May.
• The MoU was signed by NNPCL Group Chief Executive Officer, Bayo Ojulari, Chairman of Sanjiang Chemical Company, Guan Jianzhong, and Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd., Bill Bi.
• The partnership is aimed at supporting the completion and operation of the two refineries.

Earlier, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also urged NNPCL to fast-track the proposed Technical Equity Partnership with the two Chinese firms.

According to the association, the revival of the Warri and Port Harcourt refineries would boost domestic refining capacity, improve product availability, increase competition in the downstream sector, and help moderate fuel prices.