Fuel Price in Nigeria at Risk As 3 Refineries Shut Down, Marketers Warn
- PETROAN warns that the prolonged shutdown of the Port Harcourt, Warri and Kaduna refineries could worsen fuel prices
- The marketers say brief operations at the Port Harcourt Refineries showed that functional refineries can stabilise supply and reduce fuel costs
- The marketers urge the federal government to restore and sustain refinery operations by early 2026
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Fuel prices in Nigeria could face renewed pressure as the prolonged shutdown of the state-owned refineries in Port Harcourt, Warri, and Kaduna has prompted warnings from petroleum marketers.
The Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), which made this statement, said that the failure to sustain operations at the refineries, despite substantial public investment, risks exacerbating fuel costs.
Source: Getty Images
PETROAN’s National Public Relations Officer, Joseph Obele added that the situation also impacts on economic recovery and becomes a major political liability ahead of the next general election.
He added that voter sentiment would be shaped more by visible outcomes than political promises, warning that the handling of the Port Harcourt, Warri and Kaduna refineries could play a decisive role in the next general election.
Government refineries shut threaten fuel prices
Punch reports that Port Harcourt Refinery, rehabilitated at a cost of about $1.5 billion, briefly resumed operations in November 2024 but was shut down again on May 24, 2025.
The Warri and Kaduna refineries have also continued to face operational challenges, leaving the country largely reliant on imported petroleum products.
PETROAN said the short-lived return of the Port Harcourt Refinery delivered immediate economic benefits to host communities, including increased business activity and youth employment.
Obele said.
“Within the first six months of operation, business activities resumed around the refinery host communities, leading to increased commercial engagement and the employment of youths."
He warned that the state of the refineries is set to dominate political discourse as the country moves closer to another election cycle, with accusations of abandonment, mismanagement and alleged fraud expected to feature prominently.
Obele said:
“As Nigeria approaches another election season, the narratives around refinery abandonment, neglect and mismanagement will be heavily exploited by both the ruling party and the opposition."
Beyond employment and local economic activity, the association said functional refineries are essential for stabilising the downstream petroleum market and easing the burden of high fuel prices on Nigerians following subsidy removal.
He added:
“The resumption of refinery operations will introduce healthy competition in the downstream sector, which is expected to drive down petroleum product prices."
Source: Getty Images
He stressed that current fuel prices have imposed severe hardship on citizens.
Fuel price and 2027 elections
PETROAN further noted that running multiple refineries at the same time would significantly reduce import dependence, improve supply stability and create pricing advantages for consumers, Vanguard reports.
He said:
“Multiple functional refineries will reduce import dependence, improve supply stability, and directly benefit consumers through better pricing."
PETROAN urged the federal government to act decisively to ensure refinery revival translates into tangible economic gains ahead of the 2027 elections, advising that operations be restored and sustained by the first quarter of 2026.
Obele said:
“This will translate into job creation, a surge in business activities, and renewed engagement with host communities."
Dangote Refinery new petrol price N44 cheaper
Earlier, Legit.ng reported that Dangote Refinery is offering petrol at prices lower than imported fuel, intensifying competition in the country’s petroleum market.
The refinery’s ex-depot price remains at N699 per litre, while the landing cost of imported premium motor spirit (PMS) has fluctuated between N750 and N780 per litre, according to the Major Energies Marketers Association of Nigeria (MEMAN).
In its latest bulletin on Thursday, January 15, MEMAN reported that the landing cost dropped to N754.96 from N758 last week.
Source: Legit.ng
