Marketers to Tinubu: Revive refineries before January to boost energy security

Oil marketers on the platform of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have urged President Bola Tinubu to direct the Nigerian National Petroleum Company Limited to urgently restart and sustainably operate the nation’s government-owned refineries before the January election period.

The association made the call in a statement by its National President, Dr. Billy Gillis-Harry, in response to President Tinubu’s Independence Day address, in which he said Nigeria would deploy its gas resources to power new industries, create jobs and reduce production costs.

PETROAN said reviving the refineries would increase domestic refining capacity, strengthen energy security, create economic opportunities and restore value to national assets that have remained unproductive for prolonged periods.

Gillis-Harry said the President’s emphasis on lowering the cost of production was particularly important because energy costs directly affect transportation, manufacturing, agriculture and other productive activities.

He said the transition from economic reforms to what the President described as the “age of prosperity” must now be reflected in the real economy and the daily lives of Nigerians.

“Prolonged refinery inactivity has affected businesses, workers, contractors, transport operators and communities whose livelihoods depend on the petroleum value chain,” PETROAN said.

According to the association, putting the government refineries back into productive operation would complement privately owned refineries and create a more competitive downstream petroleum market.

It said increased competition could encourage efficiency, improve petroleum-product availability and potentially put downward pressure on prices, although it noted that pump prices would continue to be influenced by crude oil supply costs, exchange rates, taxes and logistics.

PETROAN, however, cautioned that refinery revival must go beyond restarting the plants, stressing that sustainable operations would require reliable crude oil supply, efficient refinery operations and an effective petroleum-products distribution network.

The association also welcomed the President’s assertion that oil theft had declined, saying sustained progress could support higher crude production, increase government revenue and strengthen confidence in the petroleum industry.

It called for stronger cooperation among the Federal Government, NNPCL, regulatory agencies, refinery operators, petroleum marketers and other stakeholders to build a sustainable petroleum market that protects consumers, encourages investment and provides a transparent and predictable operating environment.

Gillis-Harry said Nigerians expected to see the benefits of the country’s natural resources reflected in their businesses, jobs, transportation costs and everyday lives.

“A functioning domestic refining sector can be an important part of achieving that,” he said.

PETROAN also welcomed the President’s declaration that “the age of reform has done its work. Now begins the age of prosperity”, urging the Federal Government to ensure that the new phase delivers tangible benefits across the petroleum sector and the wider economy.