Politics

War Drives Fuel Price Spike, PETROAN Calls for Stronger Domestic Crude Supply

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the recent nationwide fuel price hike underscores the urgent need for Nigeria to ensure steady crude supply to local refineries.

 

PETROAN spokesperson Joseph Obele, citing National President Billy Gillis-Harry, noted that the increase in domestic petrol prices follows Dangote Refinery’s gantry price hike and the ripple effects of the escalating war between Iran, the US, and Israel. Retailers including Nigerian National Petroleum Company Limited (NNPCL), Ranoil, and Empire have raised pump prices to between ₦960 and ₦980 per litre.

 

“The recent developments highlight the vulnerability of Nigeria’s market to external shocks, particularly reliance on imported refined products,” Obele said. “Uninterrupted crude supply to local refineries is now more critical than ever to stabilize pump prices and preserve foreign exchange.”

 

PETROAN emphasized the need to revamp the country’s four government-owned refineries, restore them to full capacity, and reduce dependence on imported petroleum products. Analysts predict that global crude prices could exceed $100 per barrel if Middle East supply disruptions persist, further impacting domestic fuel costs.

 

The association urged the government to operationalize and consolidate local refining capacity to shield the domestic market from global crude volatility.

Olayinka Babatunde

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