The Petroleum Products Retail Outlets Owners Association of Nigeria has urged the Nigerian National Petroleum Company Limited to fast-track the reopening of the country’s refineries before December to avert a possible fuel scarcity and price hike during the festive season.
The association made the call while commending President Bola Tinubu’s approval of a 15 per cent import duty on petrol and diesel, saying the move could stimulate local refining and strengthen the downstream oil market if properly managed.
The National President of PETROAN, Dr Billy Harry, issued the appeal in Port Harcourt during a courtesy visit to the Pro-Chancellor and Chairman of the Governing Council of the Ignatius Ajuru University of Education, Dr Chinyere Igwe.
Harry described the policy as a bold step toward protecting domestic refineries, stabilising the market, and promoting energy security.
He, however, warned that if the measure was poorly implemented, it could cripple fuel importation and render many importers jobless, a situation he said would lead to fuel scarcity.
“NNPC must complete its partnership agreements quickly and start production at Nigeria’s refineries before December to avert any form of fuel scarcity or price hike during the Yuletide season,” he said.
The Port Harcourt, Warri and Kaduna refineries have been dormant for years despite efforts to revive them.
But the NNPC Group Chief Executive Officer, Bayo Ojulari, has expressed strong optimism that the facilities would work again, even after major stakeholders advised that the plants be sold off.
Speaking on the new tariff, Harry cautioned that failure to enforce fair regulation could wipe out importers who have long served as a check on profiteering.
“Importers of petroleum products, which were a price-check mechanism against profiteering, will be out of business if not properly managed. We call on regulatory agencies, especially the NMDPRA, to be on red alert against monopoly. If local refineries are not properly regulated, monopoly could harm the market,” he said in a statement on Friday.
The PETROAN president said while the tariff would boost local refining capacity and promote energy security, the government must ensure a level playing field for all operators.
He urged fuel importers to look inwards and begin to patronise local refineries rather than depend solely on foreign supplies.
Harry also called on the Nigerian National Petroleum Company Limited to make crude oil available to domestic refineries, warning that the success of the new policy depends on adequate feedstock supply.
He disclosed that PETROAN would collaborate with the Ignatius Ajuru University of Education to expose students to practical aspects of petroleum marketing and energy management. The group, he said, would accept students for industrial training and excursions to filling stations, depots and refineries.
The PUNCH reported earlier that the Federal Government’s decision to impose a 15 per cent import duty on petrol and diesel is part of efforts to encourage local refining.
Oil marketers had warned that the measure could push petrol prices above N1,000 per litre if local refineries fail to supply enough fuel into the local market.
According to The PUNCH, industry operators cautioned that unless Nigeria’s four state-owned refineries and private facilities such as Dangote Refinery come fully on stream, the duty could lead to fresh supply gaps and higher pump prices nationwide.
Harry maintained that despite potential short-term challenges, the long-term benefits of the policy, such as increased local refining, job creation, a stronger naira and improved energy security, outweigh its disadvantages.
“We believe this policy will ultimately boost the local economy and attract investors. But it must be implemented carefully to avoid hardship,” the PETROAN president said.
The association reiterated its support for the Tinubu administration’s reforms but urged close supervision to ensure the 15 per cent tariff strengthens, rather than destabilises, Nigeria’s downstream petroleum sector.
“This policy will boost local refining, promote economic growth, create more job opportunities, and create a level playing field for domestic refineries. The benefits of this policy include increased local refining capacity, reduced dependence on imported fuel, improved price stability, enhanced energy security, a boost to the local economy, benefits to foreign reserves, benefits to the naira gaining strength, and attracting investors.
“The potential disadvantages include potential price increases, loss of jobs on the side of importing firms, and short-term challenges. The benefits of this policy will outweigh the potential disadvantages. Regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority should be on red alert against monopoly. If local refineries are not properly regulated, it could lead to a monopoly that might harm the market,” he was quoted.
Meanwhile, the Presidency on Friday confirmed that the approved 15 per cent import tariff on petrol and diesel, describing the policy as a strategic step to stimulate local refining and strengthen Nigeria’s energy independence.
According to a statement by the Special Adviser to the President on Media and Public Communications, Sunday Dare, on his official X handle on Friday, the new policy is “a bridge, not a burden,” aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.
He described the policy as a strategic measure to end Nigeria’s dependence on imported fuel and accelerate the country’s path to energy self-sufficiency.
“It’s no longer news that President Tinubu has approved a 15 per cent import duty on petrol and diesel, a bold and strategic move aimed at reshaping Nigeria’s energy landscape,” Dare wrote.
He explained that for years, Nigeria had depended heavily on imported fuel despite being one of the world’s leading crude oil producers, a situation that drained foreign exchange, hindered job creation, and stifled local refining investments.
“For years, the nation has depended heavily on imported fuel despite being a leading crude oil producer, draining foreign exchange and exporting jobs that should have been created at home. This new policy is designed to reverse that trend by encouraging local refining, boosting domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity,” the statement added.
Dare said the policy seeks to make imported products less competitive while tilting the market in favour of locally refined fuel from the Dangote Refinery, Port Harcourt Refinery, and modular plants under construction across the country.
“By making imported fuel less competitive, the government is tilting the market in favour of local refineries such as Dangote and other modular plants, laying the groundwork for a self-sustaining and resilient energy sector,” he stated.
He added that as domestic refining ramps up, supply will strengthen, and pump prices are expected to stabilise over time. The policy, according to him, will also stimulate industrial activity, create jobs, and attract fresh investments into the downstream petroleum value chain.
“As local refining ramps up and supply strengthens, prices are expected to moderate while jobs, investment, and industrial activity expand. This policy is therefore not a burden, but a bridge, from dependence to independence, from vulnerability to strength,” Dare said.
The presidential aide’s comment marks a departure from the position of petroleum marketers, who have warned that the pump price of Premium Motor Spirit, popularly known as petrol, could rise above N1,000 per litre following President Tinubu’s approval of a 15 per cent ad-valorem import tariff on fuel imports.
The new policy, which takes effect after a 30-day transition period expected to end on 21 November 2025, is part of the government’s strategy to protect local refiners and reduce the influx of cheaper imported products that threaten domestic refining investments.
PUNCH Online reports that the latest data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicate that petrol imports still accounted for about 69 per cent of the country’s total fuel demand over the 15 months between August 2024 and 10 October 2025.
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