The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the Nigerian government to ensure a steady crude oil supply to local refineries to reduce the impact of global disruptions on Nigeria’s petroleum market.
In a statement on Tuesday, Joseph Obele, the national public relations officer (PRO) of PETROAN, called for urgent steps to address the impact of disruptions in the global oil supply chain arising from the unfolding developments in the middle east crisis.
“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has once again emphasized the urgent need to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate and consistent crude oil supply,” the statement reads.
“This proactive approach is essential to minimizing the impact of external geopolitical shocks on the nation’s petroleum market.”
According to the statement, Billy Gillis-Harry, national president of PETROAN, expressed concern about the ongoing military escalation involving the United States (US), Iran, Israel, and allied nations and the wide-ranging effects it could have on the global energy industry, especially Nigeria’s petroleum sector.
“Hostilities in the Middle East, especially around the strategic Strait of Hormuz, through which approximately 20 percent of the world’s crude oil supply passes daily, have triggered sharp volatility in international oil prices and heightened uncertainty regarding supply continuity,” he was quoted as saying.
“As the conflict intensifies, global crude oil benchmarks have surged, with analysts projecting that prices could exceed USD 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.”
Gillis-Harry said sustained increases in crude oil prices would inevitably lead to higher prices at petroleum retail outlets nationwide.
He warned that if the crisis persists, its effects will go beyond pump prices, impacting foreign exchange (FX) stability, domestic fuel pricing, and overall inflation.
In light of this, the PETROAN president urged swift and strategic measures to protect Nigeria’s energy security.
He encouraged the federal government to prioritise local refineries by ensuring a steady crude supply and creating enabling policies that support optimal operations.
The executive also asked the government to “sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilize domestic fuel pricing”.
“Urgently revamp the four government-owned refineries to restore them to full operational capacity and reduce dependence on imported petroleum products,” Gillis-Harry said.
“Monitor global market developments and respond proactively to emerging risks. Advocate policies that strengthen domestic refining capacity and reduce reliance on imports.
“Support measures aimed at shielding consumers from excessive fuel price shocks.”
He also called for continued investment in Nigeria’s petroleum infrastructure to ensure long-term energy security and stability.
Gillis-Harry stressed the importance of diplomatic engagement and peaceful resolutions in energy-producing regions to protect global oil supply chains and safeguard Nigeria’s economic interests.
