By Seun Ibiyemi
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for urgent measures to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate and consistent crude oil supply, citing escalating geopolitical tensions in the Middle East.
National President of PETROAN, Dr. Billy Gillis-Harry, made the call on Tuesday in Abuja while reacting to the ongoing military escalation involving the United States, Iran, Israel and allied nations.
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Gillis-Harry said the crisis, particularly around the strategic Strait of Hormuz, has intensified geopolitical pressure and significantly disrupted global energy markets and supply chains.
According to him, the hostilities have 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,” he said.
He added that liquefied natural gas production in Qatar had also been suspended at Ras Laffan and Mesaieed due to the conflict, causing European gas benchmarks to surge by as much as 50 per cent.
Gillis-Harry further noted that Brent crude prices climbed toward 80 dollars per barrel, with analysts warning that a prolonged closure of the Strait could push prices beyond the 100-dollar mark.
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“For Nigeria, these developments underscore the fragility of the domestic market’s reliance on imported refined products,” he said.
He warned that sustained increases in crude oil prices would inevitably be reflected at petroleum retail outlets across the country, with broader implications for foreign exchange stability, domestic fuel pricing structures and overall inflation.
“If the crisis continues, the impact will extend beyond pump prices to affect foreign exchange stability and overall inflation levels within the country,” he said.
The PETROAN president therefore called on the Federal Government to prioritise local refineries by ensuring steady crude oil supply and implementing enabling policies to support optimal operations.
He also urged the government to sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilise domestic fuel pricing.
Gillis-Harry underscored the need to urgently revamp the four government-owned refineries to restore them to full operational capacity and reduce Nigeria’s dependence on imported petroleum products.
