Oil marketers say reviving government refineries could boost domestic refining capacity, strengthen energy security and create jobs.
By Heapnews
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged President Bola Tinubu to direct the Nigerian National Petroleum Company Limited (NNPCL) to restart the country’s state-owned refineries before the January election period.
PETROAN President Billy Gillis-Harry said the prolonged inactivity of the refineries had affected businesses, workers, contractors and transport operators whose livelihoods depend on the petroleum industry.
In a statement on Thursday, the association said restoring the refineries to productive operation would increase domestic refining capacity, strengthen energy security, create jobs and improve the utilisation of Nigeria’s existing assets.
PETROAN’s call followed Tinubu’s Independence Day address, in which he highlighted the potential of Nigeria’s natural gas resources to power industries, create jobs and reduce production costs.
The association also welcomed the president’s assertion that oil theft had declined, saying sustained progress could support higher crude oil production, increase government revenue and strengthen investor confidence in the petroleum sector.
Gillis-Harry said reducing energy costs was critical to transportation, manufacturing, agriculture and other productive sectors, adding that economic reforms must translate into tangible improvements in the lives of Nigerians.
He said increased domestic refining capacity, alongside privately owned refineries, could foster competition in the downstream petroleum market, improve product availability and potentially ease prices.
However, PETROAN noted that petroleum prices would continue to be influenced by crude oil supply costs, exchange rates, taxes and logistics.
The association stressed that restarting the refineries would require reliable crude oil supplies, efficient operations and effective distribution networks to ensure sustainable production.
It also called for stronger collaboration among the federal government, NNPCL, regulatory agencies, refinery operators and petroleum marketers to build a competitive and transparent petroleum market.
PETROAN said the government’s next priority should be to ensure that its economic reforms deliver tangible benefits to businesses, workers and consumers, particularly through lower production and transportation costs.
The association reaffirmed its commitment to supporting policies aimed at strengthening domestic refining, improving petroleum distribution and attracting investment into Nigeria’s oil and gas sector.