PETROAN Calls for Restart of Idle Refineries as Petrol Prices Rise
By GLEBM News Desk
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to urgently restart Nigeria’s idle government-owned refineries as rising global crude oil prices continue to put pressure on domestic petroleum product prices.
The call comes amid renewed concerns over the impact of higher crude prices and increasing costs of petroleum products on households, businesses and the wider Nigerian economy.
PETROAN’s National Public Relations Officer, Dr Joseph Obele, said domestic refining capacity should be fully utilised to reduce the country’s dependence on imported petroleum products and strengthen energy security.
According to Obele, the immediate response to the latest increase in petroleum prices should include efforts to bring government-owned refineries back into production while simultaneously encouraging responsible private-sector investment and competition in the downstream petroleum industry.
The development comes against the background of a renewed rise in international crude oil prices. Obele linked the increase to geopolitical tensions involving the United States and Iran and concerns around the Strait of Hormuz, a major route for global oil shipments.
He said Brent crude closed at approximately $105.83 per barrel on September 16, while West Texas Intermediate traded at about $102.43 per barrel.
At the domestic level, Obele said petrol was selling for between ₦1,400 and ₦1,500 per litre in some locations, while diesel had risen above ₦2,000 per litre.
Higher energy costs have implications well beyond filling stations. Transport operators face higher operating expenses, manufacturers pay more to power machinery and move goods, farmers face increased logistics costs, while retailers ultimately pass part of the additional cost through to consumers.
PETROAN therefore argued that increasing domestic refining capacity would give Nigeria greater protection against international price volatility.
Pressure on Port Harcourt and Warri Refineries
Obele specifically urged the Federal Government and NNPCL to commence production at the Port Harcourt and Warri refineries.
The argument is that a greater volume of locally refined petroleum products could reduce Nigeria’s exposure to international product prices, shipping costs and foreign exchange movements.
Nigeria’s dependence on imported refined products has historically exposed the domestic market to fluctuations in global crude prices and exchange-rate pressures. Although new private refining capacity has changed the structure of the downstream market, PETROAN maintains that every viable refinery should be optimally utilised.
The association’s position also reflects the broader debate over the role government-owned refineries should play now that Nigeria has expanded its private-sector refining capacity.
For businesses, the cost of diesel remains particularly significant because many enterprises depend on diesel-powered generators and equipment where electricity supply is inadequate or unreliable.
A sustained rise in diesel prices can therefore increase production costs even for companies that do not directly sell petroleum products.
Broader Economic Impact
Obele warned that continued increases in petroleum product prices could create additional inflationary pressure.
Fuel is a major input into transportation, manufacturing, agriculture, construction, distribution and retail. An increase in the cost of moving goods can therefore affect prices throughout the supply chain.
For low-income households, higher transportation and food costs can also reduce disposable income.
PETROAN’s intervention therefore goes beyond a request for cheaper petrol. It is also a call for Nigeria to strengthen the domestic infrastructure required to process its own crude oil and reduce vulnerabilities associated with international energy markets.
Ogoni Oil Exploration
In a separate aspect of his statement, Obele called for an inclusive approach to any planned resumption of oil exploration in Ogoniland.
He said host communities should be treated as key stakeholders in decisions concerning petroleum exploration, environmental restoration, community development and the distribution of economic benefits.
He called for engagement among the Federal Government, Rivers State Government, traditional institutions, host communities, regulatory authorities, prospective operators, civil society groups and other stakeholders.
The position highlights the need for any renewed oil activity in the area to address both economic interests and longstanding community concerns.
For Nigeria’s downstream sector, however, PETROAN’s immediate message is centred on supply: as international oil prices rise, the country needs to make greater use of available domestic refining capacity.
The association believes that restarting viable government-owned refineries, alongside continued private-sector refining, could strengthen supply, improve energy security and reduce some of the pressures currently feeding into petroleum prices.
