PETROAN urges NNPCL to revive government refineries as fuel prices surge to N1245/litre
PETROAN urges immediate revival of Port Harcourt, Warri, and Kaduna refineries to address fuel price volatility, according to a Wednesday statement by spokesperson Joseph Obele. The association argues that operating government-owned refineries would provide fuel price competitiveness, currency stability, and energy security.
This comes as Dangote Refinery introduces dollar-denominated sales, causing depot owners to raise ex-depot petrol prices from around N1080 to N1245 per litre. However, retail pump prices in Abuja remain stable between N1155 and N1205 per litre.
PETROAN National President Billy Gillis-Harry explained that marketers earn in naira, so requiring dollars creates exchange rate volatility at the pumps. He warned this maintains excessive supplier leverage over pricing. The statement positions domestic refinery operation as Nigeria's solution to foreign exchange scarcity and fuel shortages.
The price increases affect transport costs and consumer spending. With inflation already pressuring household budgets, fuel volatility could impact food prices and commuting costs. Meanwhile, the government's ongoing subsidy reforms complicate the pricing landscape.
Should the government prioritize reviving domestic refineries for energy independence, or does the Dangote Refinery's entry provide sufficient competition despite dollar pricing?