Fresh Wave Of UNCERTAINTY AS Oil Workers Predict Gloomy Fuel Price Amid Dangote, PH Refineries Market Tussle
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has projected that despite the operational status of the Dangote and Port Harcourt Refineries, the prices of petroleum products in Nigeria will remain high. Festus Osifo, president of PENGASSAN, attributed this to the volatile exchange rate, which has surpassed N1, 600 per dollar, creating ripples across the economy and keeping commodity prices elevated.
Osifo emphasized that the refineries, while creating significant employment opportunities, will not substantially reduce the cost of petrol due to the weak naira. Drawing comparisons, he noted that when the exchange rate stood at N316 per dollar, diesel sold at about N215 per litre. The current devaluation of the naira has exacerbated the price hikes, impacting various commodities and worsening the economic challenges faced by Nigerians.
Adding to the conversation, Tonye Cole, co- founder of Sahara Group, highlighted further complexities in local fuel pricing. Speaking on Channels Television, he outlined that although restarting local refining is a positive step, it remains overshadowed by high foreign exchange costs for imported machinery. Cole noted that even with the Port Harcourt Refinery operating at 60% capacity and refining 60, 000 barrels of crude oil daily, the prices of petroleum products are unlikely to dip below N700 per litre.
Experts argue that resolving the issue of exchange rate volatility is crucial to stabilizing petroleum prices. However, addressing this challenge requires broader economic reforms. Cole pointed out that although local refining reduces pressure on foreign exchange by limiting imports, the overall pricing structure remains distorted. He praised the government’ s naira- for- crude arrangement, which has mitigated some of the costs, but emphasized the need for further steps to bring long- term relief to Nigerians.
The high cost of petrol has far- reaching consequences, affecting transportation, food prices, and overall living standards. Osifo expressed concerns over the looming food and nutrition crisis, with an estimated 33. 1 million Nigerians across 26 states and the Federal Capital Territory at risk between June and August 2025. This stark reality underscores the urgency for the government to act decisively to stabilize the economy and shield citizens from worsening hardships.
In conclusion, while the operational success of the Dangote and Port Harcourt Refineries marks a significant milestone, it alone cannot address Nigeria’ s petroleum price challenges. Exchange rate stability, economic reforms, and effective policies are essential to ensure that the benefits of local refining translate into tangible relief for Nigerians.
