The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to fully restore operations at the Port Harcourt, Warri and Kaduna refineries, warning against relying on a single refinery to meet the country’s fuel supply needs.
In a statement issued on Wednesday, PETROAN President, Dr. Billy Gillis-Harry, said the association remains in support of the deregulation of the downstream petroleum sector but believes government-owned refineries must be brought back into full commercial operation to encourage competition and strengthen Nigeria’s energy security.
He stated that depending on one dominant supplier creates a fragile market, describing the revival of the state-owned refineries as a long-term structural requirement rather than a temporary solution.
PETROAN said the recent decision by Dangote Petroleum Refinery to price petroleum products in United States dollars has exposed the risks of having the domestic fuel market heavily dependent on a single supplier.
According to the association, while the refinery’s pricing policy is a legitimate business decision, it has demonstrated how fuel prices can become vulnerable to fluctuations in foreign exchange when one supplier dominates the market.
The group warned that marketers who generate revenue in naira could face additional challenges sourcing foreign exchange to purchase petroleum products, increasing the likelihood of higher pump prices whenever the exchange rate changes.
PETROAN maintained that bringing the Port Harcourt, Warri and Kaduna refineries back into operation would promote healthy competition, provide a balance in fuel pricing, reduce pressure on foreign exchange demand, improve energy security and increase investor confidence in the downstream oil sector.
The association also called on the Federal Government to guarantee adequate crude oil supply to all domestic refineries while sustaining policies that encourage investment in both modular and conventional refining facilities.
PETROAN stressed that Nigeria’s energy security should not depend on the operations or pricing decisions of a single refinery, insisting that both public and private refineries must operate together in a competitive market to ensure long-term stability.
