PETROAN Warns Petrol May Hit N2,000 Per Litre If US-Iran War Persists
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol price in Nigeria may rise to as high as N2,000 per litre if the ongoing Middle East conflict persists.
PETROAN also said the price of diesel could climb to about N3,000 per litre should the crisis continue to escalate.
In a statement on Monday, the association’s National President, Billy Gillis-Harry, said the development was likely as the conflict involving Israel, the United States and Iran continues to push global petroleum prices upward.
“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” Gillis-Harry said.
He explained that with no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days.
Gillis-Harry urged the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 plant at the Port Harcourt refinery and the Warri refinery.
He stressed that revamping the country’s refineries for immediate domestic production is critical.
According to him, local refining would reduce Nigeria’s exposure to volatility in the international market, especially as the country has abundant crude oil resources under the custody of the NNPC.
The PETROAN president added that government-owned refineries are less vulnerable to global supply disruptions compared to privately-owned refineries that depend on imported crude.
He warned that continued increases in fuel prices would worsen inflation, cause job losses, deepen economic hardship, increase transportation costs and push up the prices of goods and services across the country.
“PMS remains essential for daily mobility, while AGO is vital for manufacturing and industrial operations,” he said.
“The ongoing conflict involving Israel, the United States, and Iran is pushing global petroleum prices to alarming levels.
“Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains.”
Gillis-Harry, however, expressed optimism that the reform policies of President Bola Tinubu would ultimately bring relief to Nigerians and stimulate economic growth.
On Monday, global crude oil prices crossed the $100 per barrel mark, marking the highest surge since July 2022 as the US-Iran conflict continues.
The development has already triggered a hike in petrol prices, with several fuel stations in Nigeria adjusting their pump prices upward.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
