PETROAN demands FG’s action over fuel-for-dollar, wants nation’s refineries activated

The Federal Government has been urged to resume commercial activities at the nation’s public refineries to calm down nerves over sale of fuel in dollar.

The call was made by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Wednesday when the Association called on the Federal Government to immediately commence full commercial production at all government-owned refineries.

The Association described them as a critical price-check mechanism against market exploitation.

The statement issued by Joseph Obele, the National Public Relations Officer (PRO) of PETROAN, quoted Billy Gillis-Harry, the National President of PETROAN, who said while the Association respects the principles of a deregulated petroleum market and the commercial rights of all refinery operators, the recent decision by Dangote Petroleum Refinery to sell petroleum products in US Dollars has further demonstrated the urgent need for multiple operational refineries to promote healthy competition, protect consumers, and strengthen Nigeria’s energy security.

PETROAN noted that a downstream market with only one dominant supplier exposes marketers and consumers to sudden pricing decisions that can significantly affect pump prices nationwide.

The Association expressed concern that marketers earn revenue in naira but may now be required to source foreign exchange to purchase petroleum products, thereby increasing operational costs, foreign exchange risks, and pressure on the retail market.

Reports already indicated that the sale in dollar had brought pressure on naira at both the official and parallel markets.

The Association emphasised that the immediate operation of the Port Harcourt, Warri, and Kaduna Refineries would provide an effective price-check mechanism against excessive pricing and market exploitation.

They said it would also encourage healthy competition among domestic refineries, stabilise petroleum product prices through multiple supply sources, reduce pressure on foreign exchange by increasing local refining capacity, and strengthen Nigeria’s energy security by ensuring uninterrupted product availability.

PETROAN thus called on Bayo Ojulari, the Group Chief Executive Officer of NNPCL, to direct the NNPCL Management to resume temporary operations at the government-owned refineries while discussions with the two prospective Chinese technical partners would continue.

The Association recalled that the refineries were operational before their shutdown in May 2025 and believes that temporary production would immediately increase domestic fuel supply, moderate price volatility, and provide much-needed relief to Nigerian consumers pending the conclusion of the technical partnership arrangements.

The Association said it was convinced that Nigeria’s long-term energy security could not depend on one refinery alone, irrespective of its production capacity.

“A resilient petroleum sector requires both public and private refineries operating competitively within the same market. PETROAN therefore urges the Federal Government to accelerate the rehabilitation and full commercial operation of the Port Harcourt, Warri, and Kaduna Refineries.

“At this critical period, operational government-owned refineries will: serve as an effective price-check mechanism against excessive pricing and market exploitation; create healthy competition among domestic refineries, leading to more stable and affordable petroleum product prices; reduce the demand for foreign exchange by increasing local refining capacity and strengthening the naira.

“It will also enhance Nigeria’s energy security by guaranteeing reliable product supply, reducing dependence on a single supplier, and minimizing the risk of supply disruptions; and improve public confidence in Nigeria’s refining capacity, stimulate economic activities, protect jobs, and support sustainable economic growth”, PETROAN said.

PETROAN further urged the Federal Government to ensure adequate crude oil supply to all domestic refineries, sustain policies that encourage competition, investment, and price stability in the downstream petroleum sector, and continue creating an enabling environment that encourages investment in additional modular and conventional refineries across Nigeria.

The Association said it remains committed to supporting reforms that promote transparency, competition, investment, energy security, and affordable petroleum products for Nigerians, while reaffirming that multiple functional refineries remain the most effective and sustainable mechanism for preventing market distortions, protecting consumers, and driving economic growth.