FUEL PRICE SURGE: PETROAN TASKS NNPC ON DOMESTIC REFINING TO SHIELD NIGERIA FROM GLOBAL SHOCKS
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has tasked the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen domestic refining capacity as a strategic step to shield Nigeria from global petroleum market shocks.
PETROAN specifically called on the Group Chief Executive Officer, Engr. Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 Plant at Port Harcourt Refinery and the Warri Refinery, both of which previously operated briefly before shutdown 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,” organized by the Department of Petroleum Economics and Policy Studies, 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. Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains.
He noted that with no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days.
He explained that before the crisis, Premium Motor Spirit (PMS) sold at ₦774 per litre but now sells above ₦1,000 per litre, representing an increase of about 30%.
Automotive Gas Oil (AGO), also known as diesel, previously sold at ₦950 per litre but has risen to ₦1,400 per litre and above, an increase of about 49%.
Projecting future trends, he warned that PMS could rise close to ₦2,000 per litre while AGO may approach ₦3,000 per litre if the situation persists.
He emphasized that rehabilitating Nigeria’s refineries for immediate domestic production is critical. Local refining, he said, would reduce exposure to international market volatility, especially as Nigeria has abundant crude oil resources under the custody of NNPC Ltd. He added that government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries dependent on imported crude.
The PETROAN President warned that continued fuel price increases would worsen inflation, cause job losses, deepen economic hardship, increase transportation costs, and raise prices of goods and services nationwide. PMS remains essential for daily mobility, while AGO is vital for manufacturing and industrial operations.
Dr Billy commended President Bola Ahmed Tinubu for the ongoing bold reform policies in the oil and gas sector and called on the President to direct the immediate rehabilitation and commencement of production at the government-owned refineries, as this will ultimately bring relief to citizens and stimulate economic growth.
Signed:
Dr Joseph Obele.
National PRO, PETROA
9th March 2026
