Mkpoikana Udoma
Port Harcourt — Nigeria’s fuel retailers have warned that escalating tensions in the Middle East could push petrol prices to N1,500 per litre, urging the Nigerian National Petroleum Company Limited, NNPC Ltd, to urgently commence production at the country’s local refineries to cushion the impact of global market shocks.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, made the call during a keynote address at Ignatius Ajuru University of Education in Port Harcourt, where he spoke on the theme “Deconstructing Energy Trilemma” at an event organised by the Department of Petroleum Economics and Policy Studies.
Gillis-Harry urged the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, to expedite the restart of Nigeria’s refineries, stressing that domestic refining remains the most effective way to shield the country from international energy disruptions.
“The ongoing conflict involving Israel, the United States, and Iran is driving global petroleum prices to extremely high and alarming levels,” he said. “Persistent drone and missile attacks threaten the Strait of Hormuz, which accounts for about 30 per cent of global crude oil transportation.”
He noted that the global crisis has already triggered sharp increases in Nigeria’s fuel prices.
“Before the war, PMS sold at about N774 per litre. Today, as tensions intensify, petrol sells between N950 and N970 per litre, representing an increase of roughly 25 per cent,” Gillis-Harry said.
He added that the price of Automotive Gas Oil (diesel) has also surged significantly.
“For AGO, the price was about N950 per litre before the war, but it has now risen to around N1,400 per litre. That represents an increase of about 47 per cent,” he stated.
According to him, rehabilitating Nigeria’s state-owned refineries would significantly reduce the country’s exposure to global price volatility since crude oil is readily available domestically.
“Local refining would reduce our vulnerability to international market shocks. Nigeria has abundant crude oil under the custody of NNPC Ltd., and local refineries are less exposed to global disruptions compared to facilities dependent on imported crude,” he said.
The PETROAN president warned that if the conflict continues to escalate, fuel prices could rise sharply in the coming months.
“If the war persists, PMS could approach N1,500 per litre, while AGO may exceed N2,000 per litre in the near future,” Gillis-Harry cautioned.
He stressed that such increases would have serious consequences for Nigeria’s economy, noting that petrol remains a critical commodity for households while diesel is essential for manufacturing and industrial operations.
“Further increases will worsen inflation, raise transportation costs, and push up the prices of goods nationwide,” he said.
Despite the concerns, Gillis-Harry expressed optimism that the reform agenda of President Bola Ahmed Tinubu would eventually stabilise the sector and stimulate economic growth.
“While the current situation is challenging, the reform policies of President Bola Ahmed Tinubu will ultimately bring relief to Nigerians and strengthen the economy,” he added.
The retailers’ warning comes amid rising global energy uncertainty and highlights growing pressure on Nigeria to accelerate domestic refining capacity in order to protect its economy from external fuel price shocks.
