Lagos: The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen domestic refining capacity. This is to shield Nigeria from global petroleum market shocks.
According to News Agency of Nigeria, Dr. Billy Gillis-Harry, National President of PETROAN, called on the Group Chief Executive Officer of NNPC Ltd., Mr. Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries. Gillis-Harry emphasized that production at the refineries was crucial, particularly at the Area five Plant at Port Harcourt Refinery and the Warri Refinery, which had previously operated briefly before undergoing a profit index evaluation shutdown.
He highlighted the urgency of this action due to the ongoing conflict involving Israel, the United States, and Iran, which is driving global petroleum prices to alarming levels. Projecting future trends, he warned that Premium Motor Spirit (PMS) could rise close to N2,000 per litre, while Automotive Gas Oil (AGO) might approach N3,000 per litre if the situation persists. Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains.
Gillis-Harry noted that without a clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days. Before the crisis, PMS, commonly known as fuel, sold at N774 per litre but now sells above N1,000 per litre, representing an increase of about 30 per cent. Diesel, previously sold at N950 per litre, has risen to N1,400 per litre and above, marking an increase of about 49 per cent.
He stressed that rehabilitating Nigeria’s refineries for immediate domestic production was critical to reducing exposure to international market volatility, especially as Nigeria possesses abundant crude oil resources under NNPC Ltd.’s custody. Government-owned refineries are less vulnerable to global supply disruptions compared to privately owned refineries dependent on imported crude.
The PETROAN president cautioned that continued fuel price increases would exacerbate inflation, lead to job losses, deepen economic hardship, increase transportation costs, and raise prices of goods and services nationwide. Fuel remains essential for daily mobility, while diesel is vital for manufacturing and industrial operations.
Gillis-Harry commended President Bola Tinubu for implementing bold policies to reform the oil and gas sector and urged him to direct the immediate rehabilitation and commencement of production at the government-owned refineries.