The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to expedite discussions with two Chinese firms that expressed interest in operating Nigerian refineries.

The national president of PETROAN, Billy Gillis-Harry, made the call on Friday in a statement following the recent drop in global crude oil prices.

It would be recalled that NNPC Ltd signed a memorandum of understanding (MoU) with two Chinese companies for a Technical Equity Partnership (TEP) to support completion and operation of the Port Harcourt and Warri refineries.

The MoU, signed with Sanjiang Chemical Company Ltd and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Ltd in China, is expected to support a potential TEP, covering the two refineries.

Recent developments in the global oil market indicate that crude oil prices are experiencing a downward trend.

Brent crude has fallen to approximately $77 to $78 per barrel following the ceasefire agreement between the U.S. and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalise.

In a bid to further encourage competition that would benefit consumers, Mr Gillis-Harry urged the group chief executive officer of NNPC Limited, Bayo Ojulari, to finalise talks on the reviving of the two refineries.

Mr Gillis-Harry said that if the refineries were successfully revived and operated as private-sector-driven facilities, petroleum product prices could decline further due to improved efficiency and increased domestic refining capacity.

He added that the resumption of operations at the refineries under competent private management would enhance supply stability, promote healthy competition, and lead to more affordable petroleum products for Nigerians.

“For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges,” he added.

Mr Gillis-Harry reiterated PETROAN’s  commitment to advocating  for  a  transparent, competitive, and consumer-friendly downstream petroleum sector that delivers fair pricing, energy security, and sustainable economic growth for all Nigerians. 

(NAN)