PETROAN Raises Alarm as Gulf Tensions Push Petrol Near N2,000 Per Litre

PETROAN Raises Alarm as Gulf Tensions Push Petrol Near N2,000 Per Litre

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices in Nigeria could surge to about N2,000 per litre if the escalating conflict in the Middle East continues to disrupt global oil supply.

The group urged the Nigerian National Petroleum Company Limited (NNPC) to urgently scale up domestic refining capacity to cushion the impact of rising crude oil prices on the Nigerian economy.

In a statement issued on Monday, PETROAN’s National President, Billy Gillis-Harry, said the ongoing hostilities involving Iran, Israel and the United States have already pushed global crude oil prices beyond the $100 per barrel mark, raising fears of sharp increases in fuel prices worldwide.

Oil prices have surged in recent days as the conflict threatens production and shipping routes in the Middle East, particularly around the strategic Strait of Hormuz, a key corridor for global oil supplies.

According to Gillis-Harry, if the situation persists, the cost of Premium Motor Spirit (PMS) in Nigeria could rise dramatically.

“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” he said.

He called on the Group Chief Executive Officer of NNPC, Bayo Ojulari, to accelerate the restart of Nigeria’s refineries, particularly the Area 5 plant in Port Harcourt and the refinery in Warri, to reduce the country’s heavy reliance on imported petroleum products.

The PETROAN president warned that continued increases in fuel prices could worsen inflation, raise transportation costs and deepen economic hardship for millions of Nigerians.

He said higher fuel prices would inevitably trigger increases in the cost of goods and services, while also threatening jobs and slowing economic activities.

“With crude oil prices already crossing $100 per barrel and petrol selling above N1,000 per litre in many locations, Nigeria could face severe economic pressure if the war drags on,” he said.

Despite the concerns, the association expressed confidence that the ongoing energy sector reforms under President Bola Ahmed Tinubu would eventually stabilise the downstream sector and provide long-term relief.

Global energy markets have become increasingly volatile as the conflict in the Gulf region intensifies, with analysts warning that oil prices could climb even higher if disruptions to supply routes persist.

PETROAN, however, insisted that boosting local refining and strengthening domestic fuel supply chains remain Nigeria’s best defence against external shocks in the global oil market.