The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has once again emphasized the urgent need to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate and consistent crude oil supply.
This proactive approach is essential to minimizing the impact of external geopolitical shocks on the nation’s petroleum market.
The National President of PETROAN, Dr. Billy Gillis-Harry, while addressing journalists in Abuja, expressed deep concern over the ongoing military escalation involving the United States, Iran, Israel, and allied nations, and its far-reaching implications for the global energy industry,particularly Nigeria’s petroleum sector.
According to him, the escalating geopolitical tensions have significantly disrupted global energy markets and supply chains.
The hostilities in the Middle East, particularly around the strategic Strait of Hormuz, through which approximately 20% of the world’s crude oil supply and a significant portion of global LNG pass daily, has triggered sharp volatility in international oil prices and heightened uncertainty regarding supply continuity.
In response to the strikes leading to a near-halt in maritime traffic, operations at the Ras Tanura refinery in Saudi Arabia, the kingdom’s largest with a capacity of 550,000 bpd, were halted following a drone strike that caused a localized fire.
Production of liquefied natural gas (LNG) in Qatar was suspended at Ras Laffan and Mesaieed due to the conflict, causing European gas benchmarks to surge by as much as 50%. Brent crude surged toward $80 per barrel, with analysts warning that a prolonged closure of the Strait could push prices well above the $100 mark.
For Nigeria, these developments underscore the fragility of the domestic market’s reliance on imported refined products.
PETROAN has emphasized that such external shocks directly threaten local pump prices and foreign exchange stability, reinforcing the urgent need to operationalize local refining capacity.
As the conflict intensifies, global crude oil benchmarks have surged, with analysts projecting that prices could exceed $100 per barrel if disruptions persist. This upward trend reflects growing concerns over potential supply shortages should shipping activities through the Strait of Hormuz remain restricted.
PETROAN notes that any sustained increase in crude oil prices will inevitably be reflected at petroleum retail outlets across Nigeria. If the crisis continues, the impact will extend beyond pump prices to affect foreign exchange stability, domestic fuel pricing structures, and overall inflation levels within the country.
In view of these developments, PETROAN calls for urgent and strategic actions to safeguard Nigeria’s energy security. This includes prioritizing local refineries by ensuring a steady crude oil supply and creating enabling policies that support optimal operations.
There is also a call to sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilize domestic fuel pricing.
Furthermore, the association stresses the need to urgently revamp the four government-owned refineries to restore them to full operational capacity and reduce dependence on imported petroleum products.
PETROAN remains committed to monitoring global market developments and responding proactively to emerging risks. The association continues to advocate for policies that strengthen domestic refining capacity, support measures aimed at shielding consumers from excessive fuel price shocks, and encourage sustained investment in Nigeria’s petroleum infrastructure to guarantee long-term energy security and stability.
Ultimately, PETROAN emphasizes the need for diplomatic engagement and peaceful resolution in energy-producing regions to safeguard
global petroleum supply chains and protect Nigeria’s national economic interests.
