Marketers project petrol price drop as NNPCL moves to revive refineries

Petroleum marketers have projected a possible reduction in petrol prices following a renewed push by the Nigerian National Petroleum Company Limited (NNPCL) to restart the country’s refineries.

 

NNPCL on April 30, 2026, signed a Memorandum of Understanding with Chinese firms — Sanjiang Chemical Company and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd — to support the completion of the Port Harcourt and Warri refineries.

 

The development has raised expectations among industry stakeholders, especially as Nigeria grapples with rising fuel costs driven by global oil market volatility.

 

The Port Harcourt refinery has remained shut since May 2025 for scheduled maintenance, while Warri and Kaduna refineries have also been inactive despite billions of dollars spent on rehabilitation over the past two decades. In the interim, the Dangote Refinery has played a major role in domestic supply.

 

Global oil prices have surged amid the ongoing Middle East crisis, with Brent crude and West Texas Intermediate trading at about $112 and $104 per barrel respectively. The impact has been felt locally, where petrol prices have climbed to between ₦1,364 and ₦1,380 per litre in Abuja, up from around ₦800.

 

The increase has triggered higher transportation costs and intensified economic pressure on consumers.

 

National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said boosting local refining capacity would enhance competition and ultimately drive down prices.

 

“The more refined products we have locally, the stronger the competition, and that will naturally push prices down,” he said, describing the refinery revival plan as a long-awaited development.

 

Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) stressed the need for complementary government support to stabilise prices.

 

IPMAN spokesperson Chinedu Ukadike urged the Federal Government to introduce incentives for both marketers and consumers to cushion the effects of price fluctuations.

 

“Providing funding support and incentives will help marketers reduce pump prices,” he said, adding that operational local refineries remain critical to achieving sustainable price stability.