Invest In Local Refineries To Check Fuel Hikes, PETROAN Urges

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that Nigerians may face steeper fuel prices if the country fails to urgently revive its domestic refineries amid rising global oil market tensions triggered by the ongoing conflict involving Iran, Israel and the United States.
The National President of PETROAN, Dr. Billy Gillis-Harry, made the call while delivering a keynote address at Ignatius Ajuru University of Education in Port Harcourt during a lecture organised by the Department of Petroleum Economics and Policy Studies. The lecture was titled “Deconstructing Energy Trilemma.”
In a statement issued by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, Gillis-Harry urged the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Engr. Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries to cushion the effects of the escalating global energy crisis.
According to him, the ongoing hostilities in the Middle East have pushed global petroleum prices to alarming levels, warning that the situation could worsen if tensions continue to threaten the Strait of Hormuz, a major shipping corridor through which about 30 per cent of the world’s crude oil supply is transported.
He explained that petroleum product prices in Nigeria had already surged since the outbreak of the conflict.
“Before the war, Premium Motor Spirit (PMS) sold for about ₦774 per litre. Today, as tensions intensify, the price has risen to between ₦1,350 and ₦1,400 per litre, representing an increase of roughly 25 per cent,” he said.
Gillis-Harry added that the price of Automotive Gas Oil (AGO), commonly known as diesel, had climbed even higher.
“Diesel sold for about ₦950 per litre before the war, but it now costs around ₦1,400 per litre, representing an increase of about 47 per cent,” he noted.
The PETROAN president stressed that rehabilitating Nigeria’s local refineries would significantly reduce the country’s exposure to volatile international markets, noting that Nigeria has abundant crude oil resources under the custody of NNPC Ltd.
He said domestic refineries would provide greater stability because they are less dependent on imported crude oil, unlike some private refineries.
Gillis-Harry warned that if the conflict persists, the price of PMS could approach ₦1,500 per litre while diesel could exceed ₦2,000 per litre in the near future.
He noted that such increases would have far-reaching implications for the Nigerian economy, as petrol is essential for transportation while diesel powers manufacturing and industrial operations.
According to him, further hikes in fuel prices would worsen inflation, increase transportation costs and ultimately raise the prices of goods and services across the country.
Despite the challenges, Gillis-Harry expressed optimism that the economic reforms being implemented by President Bola Ahmed Tinubu would eventually stabilise the sector and bring relief to Nigerians.