The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns over the escalating crisis in the Middle East, warning that it poses significant risks to Nigeria’s fuel market and energy security.
Speaking in Abuja, the National President of PETROAN, Dr Billy Gillis-Harry, stressed the urgent need to strengthen Nigeria’s domestic refining capacity through the consistent supply of crude oil to local refineries.
He said the ongoing military tensions involving the United States, Iran, Israel and allied nations have disrupted global energy markets and supply chains, with far-reaching implications for Nigeria’s petroleum sector.
According to him, hostilities in the Middle East, particularly around the strategic Strait of Hormuz, a channel through which about 20 per cent of the world’s crude oil passes daily have triggered volatility in international oil prices and heightened uncertainty over global supply continuity.
“As the conflict intensifies, global crude oil benchmarks have surged, and analysts project prices could exceed 100 dollars per barrel if disruptions persist,” he said, noting that prolonged restrictions on shipping through the Strait of Hormuz could worsen supply shortages.
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PETROAN warned that any sustained increase in crude oil prices would ultimately reflect at petroleum retail outlets across Nigeria, impacting pump prices, foreign exchange stability, domestic fuel pricing structures and overall inflation.
In response to the unfolding developments, PETROAN urged the Federal Government to take urgent and strategic measures to safeguard Nigeria’s energy security.
The association called for the prioritisation of local refineries through steady crude oil supply and enabling policies to support optimal operations. It also advocated the sustenance and strengthening of the naira-for-crude policy to ease pressure on foreign exchange and stabilise domestic fuel prices.
PETROAN further called for the urgent rehabilitation of Nigeria’s four government-owned refineries to restore full operational capacity and reduce reliance on imported petroleum products.
The group also recommended close monitoring of global energy market trends, proactive responses to emerging risks, policies to boost domestic refining capacity, and measures to shield consumers from excessive fuel price shocks.
While emphasising the need for sustained investment in Nigeria’s petroleum infrastructure, PETROAN urged diplomatic engagement and peaceful resolution of conflicts in energy-producing regions to protect global petroleum supply chains and Nigeria’s economic interests.
