By Obiabin Onukwugha
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL), to urgently restart the country’s government-owned refineries to help tackle the rising cost of petroleum products.
PETROAN made the call in a statement by its National PRO, Dr. Joseph Obele, on Thursday, emphasising that restoring domestic refining capacity was one of the immediate measures the government could take to increase local fuel supply, reduce dependence on imported refined products and ease pressure on the downstream petroleum market. “The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries,” he said.
According to him, Nigeria should maximise every viable refining facility in the country while continuing to support responsible private-sector investment and healthy competition in the downstream sector.
His call comes amid rising global crude oil prices, which he linked to tensions involving the United States and Iran and growing concerns over the security of oil supplies through the Strait of Hormuz.
Obele noted that Brent crude reportedly closed at about $105.83 per barrel on September 16, 2026, while West Texas Intermediate (WTI) stood at about $102.43 per barrel.
Obele, who is also a lecturer at the Ignatius Ajuru University of Education, Port Harcourt, Rivers State, said the impact of higher crude prices was already being felt in Nigeria, with Premium Motor Spirit (PMS) selling for between N1,400 and N1,500 per litre in some locations, while Automotive Gas Oil (AGO) had risen above N2,000 per litre.
The energy expert warned that if the increase persisted, the consequences would extend beyond the petroleum sector, pushing up the cost of transportation, food, healthcare and other essential goods and services.
“The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians,” he said.
Obele specifically called for the immediate commencement of production at the Port Harcourt and Warri refineries, arguing that their return to operation would strengthen domestic supply at a time when Nigerians are struggling with the rising cost of fuel.
He also said bringing the refineries back before the 2027 general elections would demonstrate the government’s commitment to restoring critical national assets and improving energy security.
According to him, the prolonged inactivity of government-owned refineries has affected businesses and livelihoods across the petroleum value chain, including workers, contractors, marketers, transporters and other businesses dependent on the industry.
Obele said a functional Port Harcourt Refinery could stimulate economic activity, create employment opportunities and restore confidence among industry stakeholders.
“The Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians. If the refinery is successfully restarted before the 2027 elections, it will give citizens an opportunity to assess the administration’s performance in the petroleum sector based on tangible results,” he said.
He added that the government should focus on resolving the operational challenges that have kept the refineries from sustaining production, rather than allowing the facilities to remain idle.
“The time to restart the Port Harcourt Refinery is now. Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available. Every viable refinery should be optimally utilised in the national interest,” Obele said.
While stressing the importance of government-owned refineries, he said their revival should not be viewed as a threat to private-sector operators.
Instead, he argued, government and privately owned refineries should operate side by side, with all viable facilities contributing to national energy security, adequate petroleum supply and a competitive downstream market.
He maintained that increasing domestic refining capacity would also enable Nigeria to derive greater value from its crude oil resources while reducing exposure to fluctuations in the international market for refined petroleum products.
