NNPCL urged to restart government refineries as petrol prices hit N1,500 – Expert

Energy expert and scholar, Dr Joseph Obele, has called on the Federal Government and the management of the Nigerian National Petroleum Company Limited (NNPCL) to urgently restart Nigeria’s government-owned refineries as a direct response to the rising cost of petroleum products.

Obele, who is also the National Public Relations Officer (PRO) of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), made this known in a press statement issued on Thursday, September 17, 2026.

He said the immediate and practical approach to addressing the current increase in petroleum prices is to restore production at the government-owned refineries and maximise every available refining capacity in the country.

The call comes as rising international crude oil prices and concerns around supply disruptions continue to put pressure on petroleum prices in Nigeria.

What he is saying

Dr Obele said restoring functional government-owned refining capacity would increase domestic supply, reduce dependence on imported refined petroleum products, and contribute to greater stability in the downstream petroleum market.

• “The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries.”
• “The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians.”
• “The Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians. If the refinery is successfully restarted before the 2027 elections, it will give citizens an opportunity to assess the administration’s performance in the petroleum sector based on tangible results.”
• “The people are looking for results. A functional Port Harcourt Refinery will restore confidence, support economic activities and demonstrate that Nigeria can utilise its own petroleum resources for the benefit of its citizens.”

Obele also urged Nigeria to maximise all available refining capacity while continuing to encourage responsible private-sector investment and healthy competition within the downstream petroleum industry.

More insight

Obele expressed concern over the continued rise in crude oil prices amid the ongoing tensions involving the United States and Iran and concerns around the Strait of Hormuz, warning that sustained supply risks could continue to put pressure on global petroleum prices.

He noted that Brent crude closed at about $105.83 per barrel on September 16, 2026, while WTI closed at about $102.43 per barrel.

• According to Obele, petrol was selling between N1,400 and N1,500 per litre in some locations, while diesel was selling above N2,000 per litre.
• He warned that a prolonged increase in petroleum prices would have a wider economic impact, particularly on transportation, food, medical services, and other essential commodities.
• He urged the Federal Government and NNPCL to commence production at the Port Harcourt and Warri refineries.
• He said restoring domestic refining capacity was critical at a time when the cost of petroleum products is becoming increasingly burdensome for Nigerians.

Obele said the prolonged dormancy of government-owned refineries has also had economic and employment implications across the petroleum value chain, affecting workers, contractors, marketers, transporters, businesses, and other dependants of the sector.

2027 election: Two million votes at stake

Obele stated that petroleum-sector workers and other stakeholders would vote based on the status of the refineries, claiming that two million votes are anchored on the government-owned facilities.
He said these citizens had been directly and indirectly affected through the impact of the refineries on employment, business activities, petroleum supply, and the cost of living.

• He said the 2027 elections would provide citizens with an opportunity to assess government performance, including its handling of the petroleum sector, refining capacity, employment, and the cost of living.
• Obele further stated that the Port Harcourt Refinery had previously recorded production activities.
• He argued that the focus should now be on resolving operational challenges and returning the facility to sustainable production.

Obele also said restarting the refinery before the 2027 general elections would be significant for Nigeria’s energy security and public confidence in the Federal Government’s commitment to reviving critical national assets.

What you should know

PETROAN had in March this year warned that the pump price of petrol could hit N2,000 per litre amid the ongoing Middle East tension.

The association urged NNPCL to urgently strengthen domestic refining capacity as a strategic step to shield Nigeria from global petroleum market shocks.

• PETROAN urged the Group Chief Executive Officer of NNPCL, Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries.
• The association specifically identified the Area 5 Plant at the Port Harcourt Refinery and the Warri Refinery.

The latest call comes as petrol prices continue to rise amid elevated international crude oil prices and concerns over global petroleum supply.