KEY POINTS
- Expert urges FG and NNPCL to revive Port Harcourt, Warri refineries.
- Petrol reportedly sells for N1,400-N1,500 per litre in some areas.
- Higher domestic refining could reduce exposure to global oil shocks.
The Federal Government and the Nigerian National Petroleum Company Limited, NNPCL, have been urged to revive the country’s government-owned refineries as rising international crude oil prices continue to push up the cost of petroleum products.
Energy expert and lecturer at Ignatius Ajuru University of Education, Port Harcourt, Dr. Joseph Obele, made the call on Thursday, arguing that greater use of Nigeria’s domestic refining capacity could help shield consumers from international oil market shocks.
Obele said the immediate response to the latest increase in crude oil prices should be to get the Port Harcourt and Warri refineries back into sustainable production.
He argued that Nigeria should make full use of every viable refining facility available in the country rather than remain heavily exposed to external sources of refined petroleum products.
“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries,” Obele said.
Global oil prices put pressure on Nigerian fuel costs
The call comes as international crude oil prices have climbed amid geopolitical tensions involving the United States and Iran, alongside concerns that a wider conflict could disrupt crude oil shipments through the Strait of Hormuz.
According to Obele, Brent crude closed at about $105.83 per barrel on September 16, 2026, while West Texas Intermediate (WTI) stood at approximately $102.43 per barrel.
The increase in global crude prices is already being felt in Nigeria’s downstream petroleum market, where the cost of refined products has continued to rise in some parts of the country.
Obele said Premium Motor Spirit (PMS), commonly known as petrol, was selling for between N1,400 and N1,500 per litre in some locations, while Automotive Gas Oil (AGO), or diesel, had risen above N2,000 per litre.
He warned that further increases could have wider consequences for households and businesses because petroleum products are a major component of transportation and operating costs across the economy.
Obele said sustained increases in the prices of petrol and diesel could feed into the cost of transportation, food, healthcare and other essential services.
“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.
Nigeria’s dependence on imported or externally sourced refined products leaves the domestic market vulnerable when international crude prices, freight costs, exchange rates or geopolitical developments change.
Obele believes that increasing domestic refining could provide an additional buffer against some of these external pressures.
