The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices could rise to N2,000 per litre if tensions in the Middle East persist.
PETROAN National President Billy Gillis-Harry made the call in Port Harcourt while delivering a keynote address at Ignatius Ajuru University of Education.
He urged Nigerian National Petroleum Company Limited Group Chief Executive Officer Bayo Ojulari to facilitate immediate commencement of production at local refineries, highlighting the Area 5 Plant at Port Harcourt Refinery and the Warri Refinery as critical facilities.
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.
Before the crisis, petrol sold at N774 per litre but now sells above N1,000, representing an increase of about 30 per cent, while Automotive Gas Oil has risen from N950 to N1,400 and above, an increase of about 49 per cent.
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Gillis-Harry warned that petrol could rise close to N2,000 per litre while diesel may approach N3,000 if the situation persists, emphasizing that rehabilitating government-owned refineries for immediate domestic production is critical.
He noted that government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries dependent on imported crude, warning that continued fuel price increases would worsen inflation and deepen economic hardship.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority stated that fluctuations in pump prices result from market dynamics under Nigeria’s deregulated downstream petroleum sector, responding to supply and demand rather than government regulation.
The ongoing war has pushed oil prices higher globally, with Brent crude futures surging by about 20 per cent last week and West Texas Intermediate crude climbing roughly 25 per cent amid fears of supply disruptions.
On Saturday, Israeli forces struck oil storage facilities in Tehran, marking the first reported attack on Iran’s oil infrastructure since the war began, while Iran has also targeted oil facilities in several Middle East and Gulf countries.
The Group of Seven finance ministers are set to discuss a joint release of oil from emergency reserves coordinated by the International Energy Agency, with three G7 countries including the United States expressing support for the idea.
