The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to urgently restore the nation's state-owned refineries to full commercial operations, warning that Nigeria's downstream petroleum industry cannot achieve sustainable stability if it depends on a single dominant fuel supplier.
The association said reviving the Port Harcourt, Warri and Kaduna refineries has become a strategic national imperative, arguing that a competitive refining environment is essential to protecting consumers, strengthening the naira, enhancing energy security and sustaining confidence in the country's deregulated petroleum market.
In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN National President, Dr. Billy Gillis-Harry, reaffirmed the association's support for the Federal Government's deregulation policy and acknowledged the commercial rights of all licensed refiners, including Dangote Petroleum Refinery.
However, he cautioned that deregulation should not result in a market where one major supplier has significant influence over fuel pricing nationwide.
According to PETROAN, the recent decision by Dangote Refinery to price petroleum products in United States dollars has exposed structural vulnerabilities within the downstream sector. While noting that the refinery acted within its commercial rights, the association argued that the development highlights the risks associated with concentrating domestic fuel supply in the hands of a single operator.
The association explained that because most petroleum marketers earn revenue in naira, sourcing foreign exchange to purchase products could expose them to exchange-rate volatility, increase operational costs and ultimately translate into higher pump prices for consumers.
PETROAN cited experiences in countries such as Mexico and Indonesia, where governments introduced reforms to reduce dependence on dominant refining players, as well as Lebanon and Sri Lanka, where downstream markets faced challenges after petroleum transactions became tied to foreign currencies while domestic commerce remained largely in local currencies.
According to the association, these international examples demonstrate that diversified refining capacity provides greater resilience against market disruptions than reliance on a single supplier.
The association further argued that refining capacity alone does not guarantee healthy competition.
Drawing comparisons with Saudi Arabia and several European markets, PETROAN noted that governments deliberately encourage multiple refining operators to promote price competition, improve market efficiency and prevent excessive pricing power.
It urged Nigeria to adopt a similar approach by ensuring that government-owned and private refineries operate simultaneously within a competitive market environment.
PETROAN therefore called on the Federal Government to resume operations at the Port Harcourt, Warri and Kaduna refineries while ongoing rehabilitation and technical partnership discussions continue.
According to the association, even partial production from the three facilities would increase domestic supply, moderate fuel prices and reduce reliance on imported petroleum products.
The association identified five major benefits of restarting the refineries, including creating a natural price moderation mechanism, promoting healthy competition among refiners, reducing pressure on the foreign exchange market through increased local refining, strengthening national energy security by diversifying supply sources, and restoring investor and public confidence in Nigeria's downstream petroleum industry.
It added that multiple refining centres would also help cushion the impact of maintenance shutdowns, logistics disruptions or operational challenges affecting any single refinery.
Beyond reviving the state-owned facilities, PETROAN urged the Federal Government to ensure adequate crude oil supply to all domestic refiners and sustain policies that encourage investment in both conventional and modular refineries.
The association described modular refining as a long-term solution capable of expanding Nigeria's refining capacity while reducing dependence on imported petroleum products.
PETROAN maintained that Nigeria's energy future should not depend on the operational decisions or pricing policies of any single refinery, regardless of its size or efficiency.
It stressed that a resilient and competitive downstream petroleum sector can only be achieved when public and private refineries operate side by side, ensuring affordable fuel, stronger energy security and long-term market stability.