Petroleum marketers have renewed calls for the Federal Government to revive Nigeria’s state-owned refineries following Dangote Refinery’s decision to begin selling petroleum products in US dollars.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said restoring operations at the Port Harcourt, Warri and Kaduna refineries would promote competition in the downstream sector and reduce the country’s dependence on a single domestic supplier.
Speaking in Lagos, PETROAN National President, Dr. Billy Gillis-Harry, said while the association supports the deregulation of the petroleum market, the latest development highlights the need for multiple operational refineries to ensure stable fuel supply, protect consumers and strengthen Nigeria’s energy security.
Dangote Refinery recently switched to dollar-denominated sales after the federal government’s crude-for-naira arrangement weakened. Under the new pricing structure, petroleum products supplied through the refinery’s gantry are now sold in dollars, while previously issued naira-based invoices have been withdrawn.
PETROAN warned that the move could place additional financial pressure on marketers, who earn revenue in naira but may now have to source foreign exchange to buy petroleum products. According to the association, the situation could increase operating costs, expose marketers to exchange rate fluctuations and eventually impact fuel prices.
The association appealed to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, to facilitate the temporary resumption of operations at the Port Harcourt, Warri and Kaduna refineries while discussions with prospective technical partners continue.
Gillis-Harry said restarting the facilities would increase domestic fuel supply, help moderate price volatility and provide consumers with relief pending the completion of long-term rehabilitation plans.
He added that government-owned refineries would serve as a check against excessive pricing, encourage healthy competition, reduce pressure on foreign exchange demand and strengthen confidence in Nigeria’s refining sector.
Also commenting, energy expert Dr. Joseph Obele urged the Federal Government to strengthen the crude-for-naira policy by ensuring domestic refineries receive adequate crude oil supplies. He also called on NNPCL to allocate more crude to local refiners to support naira-based transactions and reduce dependence on imported crude.
Meanwhile, global crude oil prices extended their gains, with Brent crude trading around $85 per barrel amid supply concerns and renewed geopolitical tensions. Analysts said uncertainty surrounding developments in the Strait of Hormuz and the renewed US-Iran standoff has continued to support higher oil prices.
