THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has once again emphasised the urgent need to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate and consistent crude oil supply.
The proactive approach is essential to minimising the impact of external geopolitical shocks on the nation’s petroleum market.
The National President of PETROAN, Dr Billy Gillis-Harry, while addressing journalists in Abuja on Tuesday, expressed concern over the ongoing military escalation involving the United States, Iran, Israel, and allied nations, and its far-reaching implications for the global energy industry, particularly Nigeria’s petroleum sector.
According to him, recent geopolitical tensions have significantly disrupted global energy markets and supply chains.
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.
As the conflict intensifies, global crude oil benchmarks have surged, with analysts projecting that prices could exceed USD100 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.
The PETROAN boss noted that any sustained increase in crude oil prices will inevitably be reflected at petroleum retail outlets across Nigeria.
“If the crisis continues, the impact will extend beyond pump prices to affect foreign exchange stability, domestic fuel pricing structures, and overall inflation levels within the country,” he said.
In view of these developments, PETROAN, in a statement signed by its National spokeman, Dr. Joseph Obele, called for strategic actions to safeguard Nigeria’s energy security, urging the government to encourage and prioritise local refineries by ensuring steady crude oil supply and creating enabling policies that support optimal operations.
Besides, it wants the government to sustain and strengthen the naira-for-crude policy to reduce pressure on foreign exchange and stabilise domestic fuel pricing.
Government, according to the group, should revamp the four public-owned refineries to restore them to full operational capacity and reduce dependence on imported petroleum products.
He added that the authority should monitor global market developments and respond proactively to emerging risks, and to advocate policies that strengthen domestic refining capacity and reduce reliance on imports.
Government should support measures aimed at shielding consumers from excessive fuel price shocks and encourage sustained investment in Nigeria’s petroleum infrastructure to guarantee long-term energy security and stability, he said.
PETROAN strongly advocated diplomatic engagement and peaceful resolution in energy-producing regions to safeguard global petroleum supply chains and protect Nigeria’s national economic interests.