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Revived Refineries Will Lower Fuel Prices, Boost Economy – PETROAN

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1 month ago

Feb 1, 2025.

PETROAN says revived Port Harcourt and Warri refineries will cut fuel prices.

PETROAN says revived Port Harcourt and Warri refineries will cut fuel prices.
The refineries will reduce crude oil theft and boost Nigeria’s revenue.
Job creation and economic growth will follow refinery operations, PETROAN assures.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has assured Nigerians that the reactivation of the Port Harcourt and Warri refineries will lead to a significant reduction in petrol prices nationwide.

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EKO HOT BLOG reports that in a statement on Saturday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, confirmed that both refineries are now fully operational, with PETROAN members actively loading petroleum products, including Dual Purpose Kerosene (DPK), Automotive Gas Oil (AGO), and Premium Motor Spirit (PMS).

Obele emphasized that the revival of these refineries has sparked intense competition in the petroleum sector, which is expected to drive down fuel prices.

“The resurgence of these refineries has sparked intense competition, which is 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.

He further highlighted that the availability of locally refined products would eliminate the circulation of counterfeit diesel and kerosene, which had posed serious risks to consumers.

“The revitalization of these refineries brings several advantages, including the elimination of counterfeit diesel and kerosene from the market,” Obele stated.

He lamented that Nigeria’s reliance on imported petroleum products in previous years had fueled the spread of adulterated fuels, leading to equipment damage, explosions, and health hazards. However, with the refineries now functional, he assured that genuine products would be readily available, thereby enhancing safety for consumers.

Beyond price reduction, PETROAN also linked the refinery revival to a decrease in crude oil theft, which had hindered Nigeria from meeting its OPEC production targets. Obele noted that with increased crude oil production, Nigeria stands to generate more revenue and stabilize 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,” he said.

He further noted that the revitalized refineries had created jobs, with once-idle depots now witnessing a surge in economic activity. Host communities are also benefiting from empowerment programs, which are expected to positively impact local security and reduce crime rates.

According to PETROAN, the successful operation of the refineries will enhance Nigeria’s economic growth by reducing reliance on imported petroleum products, generating additional government revenue, and improving energy security.

“Additionally, the refineries’ functionality will also enhance Nigeria’s energy security, reduce the pressure on foreign exchange, and create a stable supply chain for petroleum products.

“This will have a ripple effect on various sectors of the economy, including transportation, manufacturing, and agriculture, ultimately leading to improved economic productivity and competitiveness,” Obele concluded.

With the Port Harcourt and Warri refineries now operational, PETROAN remains optimistic that Nigeria will witness a positive shift in its petroleum sector, driving economic stability and reducing fuel costs for consumers.