Port Harcourt, Nigeria – The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices could hit N2,000 per litre if Middle East tensions persist.
The association urged the Nigerian National Petroleum Company Limited to urgently activate domestic refineries to shield the country from global market shocks.
Okay News reports that PETROAN National President Billy Gillis-Harry made the call in Port Harcourt. He delivered a keynote address titled “Deconstructing Energy Trilemma” at Ignatius Ajuru University of Education.
Gillis-Harry specifically called on NNPC Group Chief Executive Officer Bayo Ojulari to facilitate immediate commencement of production at local refineries. He highlighted the Area 5 Plant at Port Harcourt Refinery and the Warri Refinery as critical facilities.
The ongoing conflict involving Israel, the United States, and Iran is pushing global petroleum prices to alarming levels. Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains.
With no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply. Before the crisis, petrol sold at N774 per litre but now sells above N1,000, representing an increase of about 30%.
Automotive Gas Oil, also known as diesel, previously sold at N950 per litre but has risen to N1,400 and above, an increase of about 49%. Gillis-Harry warned that petrol could rise close to N2,000 per litre while diesel may approach N3,000 if the situation persists.
He emphasized that rehabilitating government-owned refineries for immediate domestic production is critical. Local refining would reduce exposure to international market volatility, especially as Nigeria has abundant crude oil resources.
Government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries dependent on imported crude. Continued fuel price increases would worsen inflation, cause job losses, deepen economic hardship, and raise transportation costs nationwide.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority stated that fluctuations in pump prices result from market dynamics under Nigeria’s deregulated downstream petroleum sector. Prices respond to supply and demand conditions rather than government regulation.
The ongoing war has pushed oil prices higher globally. Brent crude futures surged by about 20% last week, while West Texas Intermediate crude climbed roughly 25% amid fears of supply disruptions.
On Saturday, Israeli forces struck oil storage facilities in Tehran, marking the first reported attack on Iran’s oil infrastructure since the war began. Iran has also targeted oil facilities in several Middle East and Gulf countries.
The Group of Seven finance ministers are set to discuss a joint release of oil from emergency reserves coordinated by the International Energy Agency. Three G7 countries including the United States have expressed support for the idea.
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