Energy expert Dr. Joseph Obele has urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to restart the country's moribund refineries to address the rising cost of petroleum products. According to Obele, reviving the public refineries will help curb the increasing prices of petroleum products and alleviate the financial burden on Nigerians. He emphasized that restoring functional government-owned refining capacity will increase domestic supply, reduce dependence on imported refined petroleum products, and contribute to greater stability in the downstream petroleum market.
Dr. Obele, also the Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and a lecturer at the Ignatius Ajuru University of Education, Port Harcourt, noted that the immediate approach to addressing the current increase in petroleum prices is to restore production at the government-owned refineries and maximise every available refining capacity in the country. He expressed concern over the continued rise in crude oil prices amid global tensions, warning that sustained supply risks could continue to put pressure on global petroleum prices.
The expert cited the current global crude oil prices, with Brent crude closing at about $105.83 per barrel on September 16, 2026, and WTI closing at about $102.43 per barrel. He noted that the impact of these rising prices is already being felt in the Nigerian downstream market, with Premium Motor Spirit (PMS) selling in the range of ₦1,400–₦1,500 per litre in some locations, while Automotive Gas Oil (AGO) is selling above ₦2,000 per litre.
Dr. Obele warned that a prolonged increase in petroleum prices would have a wider economic impact, particularly on transportation, food, medical services, and other essential commodities. He stated that the continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services, creating additional inflationary pressure and deepening the financial hardship being experienced by Nigerians.
The expert noted that the prolonged dormancy of government-owned refineries has had serious economic and employment implications across the petroleum value chain, affecting workers, contractors, marketers, transporters, businesses, and other dependants of the sector. He emphasized that a functional Port Harcourt and Warri Refinery would stimulate activities across the petroleum value chain, support employment, and restore confidence among industry stakeholders.
Dr. Obele highlighted the importance of the Port Harcourt Refinery, which had previously recorded production activities, and argued that the focus should now be on resolving operational challenges and returning the facility to sustainable production. He emphasized that the time to restart the Port Harcourt Refinery is now, noting that Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available.
The expert concluded that the objective should not be to undermine private-sector refineries but to ensure that all viable refining assets—government and private—contribute to national energy security, adequate supply, and a competitive downstream petroleum market. He urged the federal government to maximise all available refining capacity while continuing to encourage responsible private-sector investment and healthy competition within the downstream petroleum industry.
Key points
- Dr. Joseph Obele calls for the revival of Nigeria's moribund refineries to address rising petroleum product costs
- Reviving public refineries will increase domestic supply, reduce dependence on imported refined petroleum products
- Prolonged increase in petroleum prices will have a wider economic impact on transportation, food, medical services, and other essential commodities
