The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has issued a stark warning to the Nigerian National Petroleum Company Limited (NNPC), cautioning that petrol prices could soar to nearly N2,000 per litre if global supply disruptions persist. This alert comes amid escalating geopolitical tensions involving Israel, the United States, and Iran, which are driving up international crude oil prices and threatening Nigeria's fuel stability.
PETROAN Calls for Urgent Refinery Revival
In a statement delivered by Dr Joseph Obele, the association's spokesperson, PETROAN emphasized the critical need for NNPC to repair and restart the country's moribund state-owned refineries. Specifically, the association highlighted the Area 5 Plant at the Port Harcourt Refinery and the Warri Refinery, which operated briefly before shutting down for profit evaluation. PETROAN argues that boosting local refining capacity would reduce Nigeria's exposure to volatile global oil markets and help stabilize fuel supply and prices domestically.
Global Conflicts Fuel Price Hikes
Billy Gillis-Harry, the National President of PETROAN, linked the rising cost of petroleum products to ongoing geopolitical conflicts. He explained that attacks on oil routes and infrastructure have created uncertainty in global supply chains, pushing crude oil prices higher. Speaking at an event organized by the Department of Petroleum Economics and Policy Studies at Ignatius Ajuru University of Education, Gillis-Harry warned that without intervention, petrol prices could approach N2,000 per litre, while diesel might reach about N3,000 per litre.
Current Fuel Price Trends
Gillis-Harry noted that before the current crisis, petrol sold for approximately N774 per litre but has now risen above N1,000 per litre, marking a 30% increase. Similarly, diesel prices have surged from around N950 per litre to over N1,400 per litre, a 49% rise. These increases are already impacting consumers and businesses across Nigeria.
Domestic Refining as a Long-Term Solution
PETROAN advocates for strengthening local refining operations as a sustainable solution to mitigate Nigeria's vulnerability to international market fluctuations. Gillis-Harry pointed out that Nigeria possesses abundant crude oil resources managed by NNPC, which could support stable domestic refining. He added that government-owned refineries are generally less exposed to global supply disruptions compared to private refineries reliant on imported crude.
Economic Implications of Rising Fuel Costs
The PETROAN president warned that continued fuel price hikes could exacerbate inflation and raise transportation and goods costs nationwide. Petrol remains essential for daily mobility, while diesel is widely used in manufacturing and industrial activities, making any price increase a significant economic burden.
Dangote Refinery Adjusts Prices
In related news, the Dangote Petroleum Refinery has increased its ex-depot price of petrol for the fourth time, raising it from N995 to N1,175 per litre. Diesel prices have also been adjusted to N1,620 per litre. Industry sources indicate that this revision reflects ongoing market pressures and has been communicated to fuel marketers.
Despite these challenges, Gillis-Harry expressed optimism that the reform policies of President Bola Ahmed Tinubu could eventually support economic growth and improve conditions for Nigerians. However, PETROAN stresses that immediate action on refinery repairs is crucial to prevent further price escalations and protect the economy from global shocks.
