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, PETROAN said this on Tuesday in Abuja, while reacting to the ongoing military escalation involving the United States, Iran, Israel and allied nations.
Gillis-Harry explained that in view of the Middle East crisis, the proactive approach was essential to minimising the impact of external geopolitical shocks on the nation’s petroleum market.
He noted that the crisis had far-reaching implications for the global energy industry, particularly Nigeria’s petroleum sector.
According to him, the hostilities in the Middle East particularly around the strategic Strait of Hormuz, has intensified geopolitical pressure and significantly disrupted global energy markets and supply chains.
He said that the development had triggered sharp volatility in international oil prices and heightened concerns over the stability and continuity of global energy supply.
“In response to the 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 per cent.
“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,” he said.
Gillis-Harry, while emphasising that such external shocks directly threaten local pump prices and foreign exchange stability, reinforced the urgent need to operationalise local refining capacity.
He said that any sustained increase in crude oil prices would 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.
“In view of these developments, PETROAN calls for urgent and strategic actions to safeguard the Nigeria energy sector.
“This includes prioritising local refineries by ensuring a steady crude oil supply and creating enabling policies that support optimal operations.
“We also want the federal government to sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilise domestic fuel pricing,” he said.
He underscored the need to urgently revamp the four government-owned refineries to restore them to full operational capacity and reduce dependence on imported petroleum products.
(NAN)
