The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to urgently revive the country’s state-owned refineries amidst decision by Dangote Refinery to suspend the sale of petroleum products in naira while switching to dollar-denominated transactions.
PETROAN National President, Dr. Billy Gillis-Harry, said the operation of the Port Harcourt, Warri and Kaduna refineries would provide a vital price-check mechanism in the downstream petroleum sector and prevent market dominance by a single supplier. Gillis-Harry said although the association supports a deregulated petroleum market, the reported decision by Dangote Refinery underscores the need for multiple operational refineries to guarantee competition, protect consumers and strengthen Nigeria’s energy security.
It would be recalled Dangote Refinery had switched to dollar-based transactions following the near collapse of the naira-for-crude arrangement introduced by the federal government. Under the new framework, Dangote fixed petrol at $0.779 per litre, diesel at $1.087 per litre, and aviation fuel at $0.942 per litre for gantry sales. Using the prevailing official exchange rate of about N1,376.54/$, the new dollar price translates to approximately N1,072 per litre for PMS, N1,497 per litre for diesel and N1,297 per litre for aviation fuel.
The refinery also fixed the coastal delivery price of PMS at N1,044.62 per metric tonne and invalidated all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions.
While marketers are apprehensive over the new development, checks by our correspondent indicated that fuel prices have remained virtually unchanged. For instance in Lagos, NNPCL retail stations dispense at N1118 per litre as of yesterday; Bovas N1,132; AP, 1120; North-West stations, N1,160 per litre.
However, the PETROAN boss expressed concern that petroleum marketers earn revenue in naira but could now be required to source foreign exchange to purchase petroleum products, a development he warned would increase operational costs, expose marketers to exchange rate risks and place additional pressure on the retail market. He appealed to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Engr. Bayo Ojulari, to direct the immediate resumption of temporary operations at the Port Harcourt, Warri and Kaduna refineries while discussions with two prospective Chinese technical partners continue.
Gillis-Harry recalled that the refineries were operational before their shutdown in May 2025 and said temporary production would immediately increase domestic fuel supply, moderate price volatility and provide the much-needed relief to consumers pending the conclusion of the technical partnership arrangements.
He maintained that Nigeria’s long-term energy security cannot depend on one refinery alone, irrespective of its production capacity. He said: “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; 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.”