Nigeria’s fuel retail operators have urged the federal government to restart the Port Harcourt refinery and other government-run plants, arguing that doing so would help stabilise prices, support the naira, and improve the country’s energy reliability. The call comes as new pricing signals from the Dangote Refinery—now selling refined products priced in dollars—have coincided with higher ex-depot petrol charges, raising concerns about how exchange-rate swings could quickly feed into pump prices.
Key takeaways
- PETROAN said NNPCL should urgently revive the Port Harcourt refinery and other federal refineries.
- The association linked refinery rehabilitation to fuel price competitiveness, currency stability, and improved energy security.
- PETROAN pointed to downstream volatility after the Dangote Refinery resumed dollar-denominated product sales.
- Depot owners reportedly raised ex-depot petrol prices to as much as N1245 per litre from roughly N1080.
- PETROAN argued that government refineries would help absorb market swings and reduce the impact of foreign-exchange shortages.
PETROAN presses for refinery restart to blunt downstream shocks
The Petroleum Products Retailers Outlets Owners Association of Nigeria (PETROAN) said Nigeria’s national oil company, NNPCL, should treat the revival of the Port Harcourt refinery and other federal government-owned refineries as an immediate priority. In a statement issued on Wednesday, Joseph Obele, the association’s spokesperson, said bringing the plants back would strengthen fuel price competitiveness, help stabilise the currency, and reinforce energy security across the country.
His comments arrive as the downstream sector faces fresh market optics. One of the key developments highlighted by PETROAN is the Dangote Refinery’s resumption of refined product sales priced in dollars. The shift in pricing mechanics has been closely watched because it can change how import-linked costs and exchange-rate movements pass through to domestic fuel charges.
Dollar-linked sales and the ex-depot jump
After the Dangote Refinery introduced a new price framework, depot owners increased their ex-depot petrol prices within hours. PETROAN said the ex-depot rate was pushed to levels as high as N1245 per litre, up from around N1080 per litre.
In response to the new price pattern, PETROAN argued that operating federal government refineries would serve as a stabilising tool for the market. The association’s position is that domestic supply capacity could cushion Nigeria against rapid price volatility, rather than leaving the market heavily exposed to shocks driven by foreign exchange availability and dollar-linked pricing.
National President Billy Gillis-Harry underscored the exchange-rate risk for marketers. He said marketers earn in naira, but if they must obtain dollars to secure product supply, then any movement in the exchange rate can translate into changes at the pump. He added that a shortage of foreign exchange can also translate into shortages of fuel itself, intensifying price pressure and supply constraints.
Gillis-Harry also criticised the leverage a single supplier can hold over pricing. He said the issue is not solved by the presence of one dominant pricing pathway, and he reiterated PETROAN’s case for the Port Harcourt, Warri, and Kaduna refineries as part of a broader effort to reduce exposure to such swings.
Pump prices lag while depot charges move higher
Even as depot pricing reportedly surged, retail pump prices remained comparatively steady in Abuja and surrounding areas, with prices held between N1155 and N1205 per litre. PETROAN’s broader argument is that stabilising refinery operations could help keep both wholesale and retail pricing more resilient as downstream dynamics continue to shift.
