The Petroleum Products Retail Outlets Owners Association of Nigeria has highlighted that the recent nationwide fuel price increase makes it critical for the Nigerian government to ensure consistent crude oil supply to local refineries, aiming to cushion the economy from global crude price fluctuations.
PETROAN spokesperson Joseph Obele revealed this in a statement on Tuesday, quoting the National President, “Billy Gillis-Harry.”
This development follows Dangote Refinery’s increase in gantry fuel prices, which subsequently led to a nationwide rise in retail petrol prices. The surge is linked to rising crude costs due to the escalating tensions between Iran, the US, and Israel in the Middle East.
Commenting on the situation, PETROAN emphasized that the ripple effects of the Middle East conflict, combined with domestic fuel price hikes, underline the urgent necessity for the Nigerian government to strengthen and support local refineries through uninterrupted crude supply.
“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,” he stated.
PETROAN also stressed the immediate need to revamp the four government-owned refineries to bring them back to full operational capacity, aiming to reduce Nigeria’s dependence on imported petroleum products.