Abuja: The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has stressed the urgent need to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate, consistent crude oil supply. Dr. Billy Gillis-Harry, National President of PETROAN, highlighted this necessity while responding to the ongoing military escalation involving the United States, Iran, Israel, and allied nations.
According to News Agency of Nigeria, Gillis-Harry explained that a proactive approach is essential to minimize the impact of external geopolitical shocks on Nigeria’s petroleum market. He noted the Middle East crisis has significant implications for the global energy industry, particularly affecting Nigeria’s petroleum sector.
He further elaborated that hostilities in the Middle East, particularly around the strategic Strait of Hormuz, have intensified geopolitical pressure and significantly disrupted global energy markets and supply chains. The situation has triggered sharp volatility in international oil prices and heightened concerns over the stability and continuity of global energy supply.
In response to recent strikes, maritime traffic operations at the Ras Tanura refinery in Saudi Arabia, with a capacity of 550,000 barrels per day, were halted. Production of LNG in Qatar has been suspended at Ras Laffan and Mesaieed due to the conflict, causing European gas benchmarks to surge by as much as 50 percent. Brent crude surged toward 80 dollars per barrel, with analysts warning that a prolonged closure of the Strait could push prices well above the 100 dollars mark. For Nigeria, these developments underscore the fragility of the domestic market’s reliance on imported refined products.
Gillis-Harry emphasized that such external shocks directly threaten local pump prices and foreign exchange stability, reinforcing the urgent need to operationalize local refining capacity. He stated that any sustained increase in crude oil prices would inevitably reflect 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.
In view of these developments, PETROAN calls for urgent and strategic actions to safeguard Nigeria’s energy sector. This includes prioritizing local refineries by ensuring a steady crude oil supply and creating enabling policies that support optimal operations. PETROAN also urges the federal government to sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilize domestic fuel pricing.