Abuja, Nigeria – The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has issued a stark warning that petrol prices in Nigeria could soar to N2,000 per litre if the ongoing conflict in the Middle East continues. The association also projected that diesel (AGO) could reach approximately N3,000 per litre under persistent conditions.
In a statement released on Monday, Billy Gillis-Harry, the national president of PETROAN, emphasized the gravity of the situation. “PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” Gillis-Harry said. He noted that with no clear end in sight to the conflict, petroleum product prices are expected to rise sharply in both international and domestic markets in the coming days.
Gillis-Harry urged Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, to facilitate the immediate commencement of production at Nigeria’s local refineries. He specifically called for the activation of the Area 5 plant at the Port Harcourt refinery and the Warri refinery, stressing that “revamping Nigeria’s refineries for immediate domestic production is critical.”
The PETROAN president highlighted that local refining would significantly reduce Nigeria’s exposure to international market volatility, especially given the country’s abundant crude oil resources managed by the NNPC. He also pointed out that government-owned refineries are less vulnerable to global supply disruptions compared to privately-owned refineries, which often depend on imported crude.
Gillis-Harry warned of severe economic repercussions if fuel price increases continue, stating it “would worsen inflation, cause job losses, deepen economic hardship, increase transportation costs, and raise prices of goods and services nationwide.” He underscored the importance of these products, noting, “PMS remains essential for daily mobility, while AGO is vital for manufacturing and industrial operations.”
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,” Gillis-Harry explained.
On Monday, global crude oil prices surged past the $100 per barrel mark, marking the highest increase since July 2022, as the US-Iran conflict intensified. This surge has already led to increased petrol costs, with fuel stations across Nigeria reportedly raising pump prices.
Despite the gloomy forecast, Gillis-Harry assured Nigerians that President Bola Tinubu’s reform policies would ultimately bring relief to citizens and stimulate economic growth.
