Nigeria's oil refining industry has received a significant boost with the resurgence of two local refineries, Port Harcourt and Warri, which are now fully operational and supplying petroleum products to retailers. This development is expected to drive down petroleum prices through intense competition, bringing relief to consumers who have been advocating for lower prices.

According to the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), its members are now loading their trucks with petroleum products, including Dual-Purpose Kerosene, Automotive Gas Oil, and Premium Motor Spirits, from the Port Harcourt and Warri refineries. This dispels earlier skepticism over the Nigerian National Petroleum Company Limited's refineries' partial operation.

The Port Harcourt refinery is currently selling petrol, diesel, and kerosene to retailers, while the Warri refinery is supplying only diesel and kerosene. The increased competition is expected to trigger price reductions, a crucial factor in stabilizing the market. PETROAN's spokesman, Joseph Obele, noted that the refineries' revitalization has brought numerous benefits, including the eradication of adulterated diesel and kerosene from the market.

The lack of operational refineries had led to an increase in fake petroleum products, which put customers at serious risk. However, with the availability of original diesel and kerosene, the demand for fake products has decreased, reducing the risk of explosions and equipment damage. 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. This development comes on the heels of a recent report that highlighted Nigeria's shortfall in local production, with the country importing around 3.2 million metric tonnes of PMS and 980,485 metric tonnes of diesel from October 2024 to January 2025. This equates to about 4.29 billion liters of gasoline and 1.153 billion liters of diesel.

The revival of the Port Harcourt and Warri refineries is a significant step towards addressing Nigeria's energy challenges and reducing its reliance on imported petroleum products. As the country continues to navigate its energy landscape, the increased competition and availability of original products are expected to have a positive impact on the market and consumers alike.

In the broader context, Nigeria's efforts to revitalize its refining industry are critical to its economic development and energy security. The country's ability to meet its energy demands through local production will not only reduce its reliance on imports but also create jobs and stimulate economic growth.