The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the price of Premium Motor Spirit (PMS), popularly known as petrol, could rise to nearly N2,000 per litre if the Federal Government fails to urgently strengthen domestic refining capacity.
PETROAN also called on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to accelerate the resumption of production at the country’s government-owned refineries in order to shield Nigeria from the shocks of the volatile global petroleum market.
The National President of PETROAN, Dr. Billy Gillis-Harry, made the call in Port Harcourt while delivering a keynote address titled “Deconstructing Energy Trilemma” at a programme organised by the Department of Petroleum Economics and Policy Studies of Ignatius Ajuru University of Education.
Gillis-Harry specifically urged the Group Chief Executive Officer of NNPC Ltd., Engr. Bayo Ojulari, to facilitate the immediate commencement of operations at local refineries, particularly the Area 5 Plant of the Port Harcourt Refinery and the Warri Refinery, which previously operated briefly before being shut down for profit index evaluation.
According to him, rising tensions and military confrontations involving Israel, the United States and Iran are pushing global petroleum prices to alarming levels, as drone and missile attacks threaten key oil routes and critical infrastructure.
He noted that the situation has created uncertainty in global supply chains and warned that with no clear end to the conflict, petroleum product prices in both international and domestic markets could increase sharply.
“Before the current crisis, PMS sold for about N774 per litre. Today, it sells for over N1,000 per litre, representing an increase of about 30 per cent,” he said.
He added that Automotive Gas Oil (AGO), commonly known as diesel, which previously sold at about N950 per litre, has risen to N1,400 per litre and above, representing an increase of about 49 per cent.
Projecting future trends, Gillis-Harry warned that PMS could rise close to N2,000 per litre, while diesel might approach N3,000 per litre if the global situation persists.
He stressed that reviving Nigeria’s refineries for immediate domestic production would significantly reduce the country’s exposure to international market volatility, particularly given the nation’s abundant crude oil resources under the custody of NNPC Ltd.
The PETROAN president noted that government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries that depend largely on imported crude.
He further warned that continued increases in fuel prices would worsen inflation, trigger job losses, deepen economic hardship and drive up transportation costs and the prices of goods and services across the country.
While expressing concern over the current situation, Gillis-Harry said he remained optimistic that the reform policies of President Bola Ahmed Tinubu would eventually bring relief to Nigerians and stimulate economic growth.
