Operations at the Port Harcourt and Warri refineries are now fully operational, with members of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) actively loading their trucks at these facilities. This development marks a significant shift, dispelling previous doubts about the partial operation of the refineries owned by the Nigerian National Petroleum Company Limited (NNPCL).
PETROAN spokesperson Joseph Obele confirmed that members are now loading petroleum products, including Dual-Purpose Kerosene (DPK), Automotive Gas Oil (AGO), and Premium Motor Spirits (PMS). He further explained that while the Port Harcourt refinery is supplying petrol, diesel, and kerosene to retailers, the Warri refinery is focusing on diesel and kerosene, as reported by The Punch.
The revival of these refineries has already triggered intense market competition, which is expected to help reduce petroleum prices. Obele pointed out that competition is a key factor in driving down prices, especially as Nigerians continue to advocate for lower PMS prices. “The resurgence of these refineries has sparked intense competition, expected to drive down petroleum prices. As Nigerians advocate for lower PMS prices, it is clear that competition is a crucial factor in triggering price reductions,” he said.
Additionally, the revitalization of the refineries has led to the elimination of adulterated diesel and kerosene from the market, bringing numerous benefits. Obele highlighted that the lack of operational refineries had contributed to the rise in fake petroleum products, which posed significant risks to customers. “With the availability of original diesel and kerosene, the demand for fake products has decreased, reducing the risk of explosions and equipment damage,” he noted.
The return to full refinery operation has also helped decrease crude oil theft, which had previously hindered Nigeria’s ability to meet its OPEC production targets. As crude oil production increases, Nigeria is expected to generate more revenue and contribute to the stabilization of the naira. “The refineries’ functionality has also contributed to a decrease in crude oil theft, which has hindered Nigeria’s ability to meet OPEC production targets. As crude oil production increases, Nigeria is expected to generate more revenue and stabilize the naira,” Obele added.
However, it’s important to note that Nigeria still faces a shortfall in local production. A recent report revealed that between October 2024 and January 2025, the country imported approximately 3.2 million metric tonnes of PMS and 980,485 metric tonnes of diesel, indicating a gap in domestic production capacity. This shortfall is equivalent to about 4.29 billion liters of gasoline and 1.15 billion liters of diesel, based on conversion rates of 1,341 liters per metric tonne for gasoline and 1,176 liters per metric tonne for diesel.
In conclusion, while the revitalization of the Port Harcourt and Warri refineries signals a positive step forward, Nigeria’s petroleum sector still faces challenges, particularly in bridging the gap between local production and demand. As the refineries continue to operate, the competition and availability of genuine products are expected to yield further benefits for the country.