The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen domestic refining capacity to shield the country from the impact of global petroleum market shocks.
PETROAN called on the Group Chief Executive Officer of NNPC Ltd., Engr. Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 Plant at the Port Harcourt Refinery and the Warri Refinery, which had earlier operated briefly before shutting down for profit index evaluation.
The National President of PETROAN, Billy Gillis-Harry, made the call in Port Harcourt while delivering a keynote address titled “Deconstructing Energy Trilemma” at an event organised by the Department of Petroleum Economics and Policy Studies at Ignatius Ajuru University of Education.
According to him, the ongoing conflict involving Israel, the United States and Iran is pushing global petroleum prices to alarming levels, with sustained drone and missile attacks threatening critical oil routes and infrastructure and creating uncertainty in global supply chains.
He warned that with no clear end in sight to the conflict, petroleum product prices in both international and domestic markets could rise sharply in the coming days.
Gillis-Harry explained that before the crisis, Premium Motor Spirit (PMS) sold for about ₦774 per litre but has now risen to above ₦1,000 per litre, representing an increase of roughly 30 per cent.
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Similarly, Automotive Gas Oil (AGO), also known as diesel, which previously sold for about ₦950 per litre, has increased to ₦1,400 per litre and above, marking a rise of about 49 per cent.
Projecting future trends, he warned that PMS could climb close to ₦2,000 per litre while AGO may approach ₦3,000 per litre if the situation persists.
He stressed that rehabilitating Nigeria’s refineries for immediate domestic production remains critical, noting that local refining would reduce the country’s exposure to international market volatility, especially as Nigeria possesses abundant crude oil resources under the custody of NNPC Ltd.
The PETROAN president added that government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries that depend on imported crude.
He further warned that continued fuel price increases could worsen inflation, trigger job losses, deepen economic hardship, and raise transportation costs as well as the prices of goods and services nationwide.
While noting that Premium Motor Spirit remains essential for daily mobility, he said Automotive Gas Oil is vital for manufacturing and industrial operations.
Gillis-Harry, however, expressed optimism that the reform policies of President Bola Ahmed Tinubu would eventually bring relief to Nigerians and stimulate economic growth.
