The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to immediately restore the Port Harcourt, Warri and Kaduna refineries to full commercial operation, saying a competitive refining industry is essential for stable fuel prices, stronger energy security and reduced pressure on the naira.
The association also urged the government to ensure an adequate supply of crude oil to all domestic refiners, stressing that Nigeria’s downstream petroleum market should not depend on the pricing decisions or operational capacity of a single refinery.
In a statement issued on Wednesday, PETROAN President, Dr. Billy Gillis-Harry, said the association supports the deregulation of the downstream petroleum sector and respects the commercial decisions of licensed refiners, including the Dangote Petroleum Refinery. However, he warned that the current market structure requires urgent attention.
According to him, Dangote Refinery’s recent decision to price petroleum products in United States dollars has highlighted the risks of a market dominated by one supplier. He noted that petroleum marketers generate revenue in naira and would face exchange rate risks if required to source foreign currency to purchase products, a situation that could ultimately drive up pump prices.
Gillis-Harry said although pricing in dollars remains a legitimate commercial decision, Nigeria needs multiple refining sources to protect consumers and the economy from currency fluctuations and supply disruptions.
Drawing comparisons with countries such as Mexico and Indonesia, he said both nations introduced reforms aimed at reducing dependence on dominant refiners and promoting competition, adding that global experience shows markets controlled by a single supplier are more vulnerable to instability.
He maintained that refining capacity alone does not guarantee competition, stressing that multiple operators are necessary to promote fair pricing, improve market efficiency and protect consumers.
PETROAN therefore called for the temporary resumption of operations at the Port Harcourt, Warri and Kaduna refineries while discussions on their long-term rehabilitation continue. The association described the proposal as a practical interim solution that would help create a more competitive refining landscape.
According to the group, even partial production from the government-owned refineries would improve product availability, moderate pricing behaviour, reduce dependence on a single supplier and strengthen Nigeria’s energy security.
PETROAN said restarting the refineries would establish a price-check mechanism, encourage genuine competition among refiners, reduce foreign exchange demand through increased local refining, strengthen national energy security by diversifying supply sources and boost investor confidence in the downstream petroleum sector.
The association also urged the Federal Government to sustain policies that encourage investment across the refining value chain, including modular refineries, while ensuring all domestic refiners have fair access to crude oil feedstock.
PETROAN reaffirmed its support for ongoing downstream reforms but insisted that restoring the country’s existing refineries remains the fastest and most practical step towards building a competitive, resilient and affordable petroleum products market.