Tanya Davidson
Port Harcourt — Energy expert and lecturer at Ignatius Ajuru University of Education, Port Harcourt, Dr Joseph Obele, has called on the Federal Government and Nigerian National Petroleum Company Limited, NNPCL, to urgently restart government-owned refineries to cushion the impact of rising petroleum product prices.
Obele said Nigeria should maximise every viable refining facility, arguing that restoring domestic refining capacity would increase local supply, reduce dependence on imported products and help stabilise the downstream petroleum market.
“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries,” Obele said.
His call comes amid rising global crude oil prices and concerns over supply disruptions linked to tensions involving the United States and Iran and the Strait of Hormuz.
Obele noted that Brent crude closed at about $105.83 per barrel as at September 16, 2026, while West Texas Intermediate, WTI, closed at about $102.43 per barrel.
He said the pressure was already being transmitted to Nigeria’s downstream market, with Premium Motor Spirit, PMS, selling for between N1,400 and N1,500 per litre in some locations, while Automotive Gas Oil, AGO, was selling above N2,000 per litre.
“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 specifically urged NNPCL to commence production at the Port Harcourt and Warri refineries, saying functional government-owned facilities would also stimulate activity across the petroleum value chain.
He said prolonged dormancy of the refineries had implications for workers, contractors, marketers, transporters, businesses and other participants dependent on the downstream industry.
According to him, restoring the Port Harcourt Refinery to sustainable production would strengthen domestic petroleum supply while creating economic activity around the facility.
“The Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians,” Obele said.
“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 government-owned refineries should not be positioned against private-sector facilities, but should operate alongside viable private refineries to increase national refining capacity and competition.
“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,” he said.
“Every viable refinery should be optimally utilised in the national interest.”
He also said the government should resolve outstanding operational challenges at the Port Harcourt refinery and ensure that any restart is followed by sustainable operations rather than another cycle of shutdowns.
Obele said the objective should be to maximise all available refining capacity while continuing to encourage responsible private-sector investment in the downstream petroleum industry.
