The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to ensure consistent crude oil supply to domestic refineries, following a recent nationwide increase in fuel pump prices. The association linked the price hike to global crude oil surges triggered by escalating conflict in the Middle East, arguing it highlights Nigeria’s vulnerability due to its reliance on imported refined petroleum.
As of Tuesday, major marketers including the Nigerian National Petroleum Company Limited (NNPCL), Ranoil, and Empire raised retail fuel prices to between N960 and N980 per liter. This adjustment followed a similar increase by the Dangote Refinery, itself a response to rising international crude costs amid the war involving Iran, the US, and Israel.
In a statement, PETROAN spokesperson Joseph Obele, quoting National President Billy Gillis-Harry, stated that the developments underscore the fragility of Nigeria’s dependence on imported refined products. He noted that external shocks directly threaten local pump prices and foreign exchange stability, making the operationalization of local refining capacity an urgent priority.
Analysts cited in the statement warned that global crude benchmarks could surpass $100 per barrel if Middle East supply disruptions persist, particularly through the critical Strait of Hormuz shipping lane. PETROAN asserted that such volatility inevitably filters down to Nigerian consumers.
The association further called for the immediate revitalization of Nigeria’s four government-owned refineries. Restoring these facilities to full capacity, PETROAN argued, is essential to reducing dependence on imported petroleum, insulating the domestic market from international price swings, and conserving foreign exchange.
This call emphasizes a long-standing national challenge: despite vast crude oil reserves, Nigeria has historically relied on imports due to insufficient domestic refining. The current price surge has renewed focus on expanding local refining, with the Dangote Refinery representing a significant private-sector addition. However, PETROAN’s statement stresses that government-owned facilities must also be fully activated to achieve meaningful energy security and price stability for the Nigerian market.
