The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to immediately restore full commercial production at the state-owned refineries.
It warned that relying on a single dominant refinery poses risks to fuel pricing, currency stability and Nigeria’s energy security.
It made the call in a statement issued on Wednesday by its National Public Relations Officer, Dr Joseph Obele.
According to the association, resuming operations at the Port Harcourt, Warri and Kaduna refineries has become a structural necessity rather than an emergency measure.
PETROAN said its position follows the recent decision by Dangote Petroleum Refinery to price petroleum products in United States dollars, arguing that the development exposed the risks of concentrating the downstream market around one major supplier.
It quoted its National President, Dr Billy Gillis-Harry, as saying that PETROAN supports the deregulation of the downstream petroleum sector and respects the commercial rights of every licensed refinery operator, including Dangote Refinery.
“The Association continues to respect the logic of a deregulated downstream sector and the commercial prerogatives of every licensed refinery operator, Dangote Petroleum Refinery included. But respect for market principles is not the same thing as indifference to market structure. And it is the structure, more than any single decision, that now demands attention,” Gillis-Harry said.
The association stressed that Dangote refinery’s decision to sell products in dollars highlighted the dangers of allowing the domestic fuel market to depend on a single supplier’s exchange rate decisions.
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“The recent move by Dangote Petroleum Refinery to price its products in United States dollars was, on its face, a commercial choice within a company’s rights. But it has done something more consequential than adjust an invoice.
“It has exposed, with unusual clarity, what happens when a domestic market’s price mechanism becomes dependent on a single actor’s exchange-rate calculus,” PETROAN said.
It noted that marketers earn revenue in naira, and requiring them to source dollars to buy fuel could expose pump prices to exchange rate fluctuations and foreign exchange shortages.
“For Nigeria, the mechanics are direct. Marketers earn in naira. If they must now source dollars to secure product, every fluctuation in the exchange rate becomes a fluctuation in pump prices, and every scarcity of foreign exchange becomes a scarcity of fuel,” PETROAN stated.
It argued that increased local refining capacity from government-owned facilities would provide competition and reduce the risks associated with dependence on a single supplier.
It said operational government refineries would serve as a check on fuel pricing, encourage genuine competition, reduce pressure on foreign exchange demand, strengthen energy security and improve public and investor confidence in the downstream sector.
PETROAN noted that the Port Harcourt, Warri and Kaduna refineries were operational before their shutdown in May 2025 and called on the government to resume production while discussions with prospective Chinese technical partners continue.
According to the association, the request is “not full rehabilitation overnight, but a temporary resumption of production while discussions with prospective Chinese technical partners proceed. It is a bridge, not a substitute for reform.”
It also urged the Federal government to guarantee adequate crude oil supply to all domestic refineries, sustain policies that promote investment and competition in the downstream sector and encourage the growth of both modular and conventional refineries.
PETROAN maintained that Nigeria’s energy security should not depend on a single refinery regardless of its size.
“The Association’s position, stated plainly, is this: Nigeria’s energy security cannot rest on the fortunes, or the currency preferences, of a single refinery, no matter how large. A resilient petroleum sector needs public and private capacity operating side by side, competing on the same terms, in the same market,” it said.
The association reaffirmed its support for reforms that promote transparency, investment and affordability, adding that restarting the country’s government-owned refineries remains the quickest step toward building a more competitive and resilient downstream petroleum sector.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X