Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to immediately resume commercial production at the nation’s government-owned refineries, warning that the country’s growing dependence on a single supplier following Dangote Petroleum Refinery’s decision to price petroleum products in United States dollars could expose the downstream market to higher fuel prices and foreign exchange volatility.
The association said restarting the Port Harcourt, Warri and Kaduna refineries has become a structural necessity to restore competition, strengthen energy security and protect consumers from the risks associated with market concentration, reports The Guardian.
National President of PETROAN, Dr Billy Gillis-Harry, said the association supports the deregulation of the downstream sector and respects the commercial rights of every licensed refinery operator, including Dangote Petroleum Refinery, but argued that the current market structure requires urgent government attention.
He said: “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.”
According to him, marketers earn revenue in naira and would be compelled to source foreign exchange to buy products if dollar pricing persists, making exchange-rate movements a direct determinant of pump prices.
“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,” he said.
PETROAN maintained that increasing refining capacity alone is insufficient if supply remains concentrated in a single facility, insisting that multiple refineries are needed to ensure genuine competition and prevent a single supplier from exerting excessive pricing power.
The association therefore called for the temporary resumption of production at the Port Harcourt, Warri and Kaduna refineries while discussions with prospective Chinese technical partners continue, describing the move as a bridge rather than a substitute for long-term reforms.
It argued that operational government-owned refineries would serve as a price-check mechanism, promote price discovery through competition, reduce pressure on foreign exchange by increasing local refining, strengthen energy security through diversified supply, and restore public and investor confidence in the downstream petroleum sector.
Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has described the Dangote Petroleum Refinery and Petrochemicals as a source of national pride and Nigeria’s most transformative industrial investments.
He said the federal government will continue to provide the policy and regulatory support needed to maximise its contribution to the country’s energy security, industrialisation and economic growth.
Ekpo gave the commendation during a visit to the refinery in Lekki, Lagos, alongside the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Addressing the management of the refinery after a tour of the facility on Monday, the minister said what the delegation witnessed underscored the importance of supporting indigenous investments capable of transforming Nigeria’s economy, creating employment and strengthening the country’s energy security.
According to him, the refinery stands as compelling evidence of what Nigerian enterprise can achieve and deserves the full backing of government institutions.
“What we have come to see today is an eye-opener. A Nigerian has taken us to this level. Whether in terms of employment or providing for the needs of the nation, this is something we should all be proud of,” Ekpo said.
The minister assured the refinery of continued collaboration from both policymakers and regulators, stressing that the government would maintain an enabling environment for investments that advance national development.
Also speaking during the visit, Chairman of the Board of NUPRC, Magnus Abe, described the Dangote Petroleum Refinery as one of the most remarkable industrial accomplishments ever undertaken in Nigeria.
Group’s Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, who conducted the ministers and NUPRC delegation on a tour of the refinery, commended them for proceeding with the visit despite the heavy rainfall, describing it as a demonstration of their commitment to Nigeria’s industrial development.
