The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices in Nigeria could rise to as much as N2,000 per litre if the ongoing conflict in the Middle East continues.
In a statement issued on Monday, Billy Gillis-Harry, national president of PETROAN, said diesel prices could also climb to about N3,000 per litre if the situation persists.
“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” Gillis-Harry said.
He noted that with no clear end to the conflict, petroleum product prices in both international and domestic markets are likely to rise sharply in the coming days.
Gillis-Harry called on Bayo Ojulari, group chief executive officer of the Nigerian National Petroleum Company (NNPC) Limited, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 plant at the Port Harcourt refinery and the Warri refinery.
He stressed that reviving Nigeria’s refineries for immediate domestic production is critical.
According to him, local refining would reduce the country’s exposure to international market volatility, especially as Nigeria has abundant crude oil resources under the custody of the NNPC.
Gillis-Harry added that government-owned refineries are less vulnerable to global supply disruptions compared to privately-owned refineries that rely on imported crude.
He warned that continued increases in fuel prices “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,” the PETROAN president said.
“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.”
Gillis-Harry, however, expressed confidence that the reform policies of President Bola Tinubu would eventually bring relief to Nigerians and stimulate economic growth.
On Monday, global crude oil prices crossed the $100 per barrel mark, marking the highest surge since July 2022 as the US-Iran conflict continues.
The development has already triggered a rise in petrol prices, with several filling stations across Nigeria increasing their pump prices.