The Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) have been urged to revive the government-owned refineries as rising crude oil prices continue to put pressure on the cost of petroleum products and worsen the burden on households and businesses.
An energy expert and lecturer at Ignatius Ajuru University of Education, Port Harcourt, Dr Joseph Obele, made the call on Thursday, saying the restart of the Port Harcourt and Warri refineries could help strengthen domestic fuel supply and reduce Nigeria’s exposure to international market shocks.
Obele said the government should maximise every available refining capacity in the country, rather than depend heavily on external sources of refined products.
“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries,” he said.
His position comes amid international oil prices surge due to geopolitical tensions involving the United States and Iran and concerns over potential disruptions around the Strait of Hormuz.
Obele said Brent crude closed at about $105.83 per barrel on September 16, 2026, while West Texas Intermediate (WTI) stood at about $102.43 per barrel.
He said the effect of the higher crude prices was already being reflected in Nigeria’s downstream market, with Premium Motor Spirit (PMS) selling between N1,400 and N1,500 per litre in some locations, while Automotive Gas Oil (AGO) had risen above N2,000 per litre.
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According to him, sustained increases in petroleum prices could trigger further increases in transportation, food, medical services and other essential commodities.
“The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians,” he said.
Obele therefore called for the immediate return of the Port Harcourt and Warri refineries to sustainable production, arguing that government-owned facilities should complement private-sector refineries in meeting national fuel requirements.
He said reviving the refineries would not only increase domestic supply but also stimulate activities across the petroleum value chain, including employment for workers, contractors, marketers, transporters and other businesses.
According to him, the prolonged dormancy of government-owned refineries has affected economic activities connected to the facilities and weakened confidence in the country’s ability to fully utilise its petroleum resources.
He maintained that the Port Harcourt Refinery, in particular, should be treated as a measurable demonstration of government’s commitment to restoring critical national assets.
“If the refinery is successfully restarted before the 2027 elections, it will give citizens an opportunity to assess the administration’s performance in the petroleum sector based on tangible results,” Obele said.
He, however, stressed that government intervention should not be designed to undermine privately owned refineries.
Rather, he said, government and private refineries should operate within a competitive market in which every viable facility contributes to energy security and adequate petroleum supply.
“The time to restart the Port Harcourt Refinery is now. Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available. Every viable refinery should be optimally utilised in the national interest,” he said.
Obele urged the Federal Government and NNPCL to resolve the operational challenges affecting the refineries and ensure that any restart is backed by a sustainable maintenance and production plan.
He said maximising domestic refining capacity would give Nigeria greater resilience against fluctuations in international crude prices while supporting jobs, businesses and economic activities across the petroleum value chain.
https://tribuneonlineng.com/fg-nnpcl-urged-to-revive-govt-owned-refineries-to-tackle-rising-oil-prices/
