PETROAN warns petrol could hit ₦2,000 without urgent domestic refining

KEY POINTS

• PETROAN has issued a stark warning that petrol (PMS) prices could surge toward ₦2,000 per litre if domestic refineries remain inactive during the current global crisis.
• The association urged NNPC Ltd. to facilitate the immediate commencement of production at the Port Harcourt (Area 5) and Warri refineries.
• Geopolitical tensions involving the U.S., Iran, and Israel have already driven petrol prices up by 30%, currently selling above ₦1,000 per litre.
• Diesel (AGO) is similarly projected to approach ₦3,000 per litre if international supply chain disruptions persist.

MAIN STORY

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised the alarm over a looming energy price peak, projecting that petrol could hit ₦2,000 per litre in the coming days. Dr. Billy Gillis-Harry, National President of PETROAN, made the call on Monday, urging the Group CEO of NNPC Ltd., Mr. Bayo Ojulari, to prioritize domestic refining as the only viable shield against a volatile global market.

According to PETROAN, the urgency stems from the escalating conflict involving Israel, the United States, and Iran, which has compromised critical oil routes. Gillis-Harry noted that before the current Middle East crisis, petrol sold at ₦774 per litre but has already crossed the ₦1,000 mark—a 30% increase. Diesel has seen an even more drastic 49% jump, rising from ₦950 to over ₦1,400 per litre. Without the immediate activation of the Port Harcourt Area Five Plant and the Warri Refinery, the association warns that these prices will continue to climb as international supply shrinks.

PETROAN argues that government-owned refineries are uniquely positioned to stabilize the economy because they are less vulnerable to the global supply disruptions that plague private refineries dependent on imported crude. By utilizing Nigeria’s own crude oil resources under the custody of NNPC Ltd., the country can decouple local pump prices from international shocks. Gillis-Harry emphasized that a ₦2,000 petrol price would deepen economic hardship and worsen inflation nationwide, calling on President Bola Tinubu to direct an immediate “rehabilitate and produce” mandate for all state-owned refineries.

WHAT’S BEING SAID

• “With no clear end to the conflict, petroleum product prices… are expected to rise sharply. PMS could rise close to ₦2,000 per litre,” warned Dr. Billy Gillis-Harry, President of PETROAN.
• He described the current 49% spike in diesel as a threat to manufacturing, stating that “diesel is vital for industrial operations.”
• PETROAN commended the President’s reform policies but insisted that domestic production is the final step to “bring relief to citizens and stimulate economic growth.”

WHAT’S NEXT

• Retailers are bracing for potential price adjustments at the pumps as international crude prices react to the latest drone and missile attacks in the Gulf.
• Stakeholders are awaiting a technical update from NNPC Ltd. regarding the “profit index evaluation” that previously paused operations at the Warri and Port Harcourt plants.
• There is growing pressure for the Federal Government to implement a “Domestic Crude for Domestic Needs” policy to ensure local refiners have priority access to Nigerian crude.

BOTTOM LINE

The Bottom Line is that PETROAN has set ₦2,000 as the psychological and economic “red line” for the Nigerian fuel market. By linking this projected hike directly to the inactivity of the Port Harcourt and Warri refineries, the association is making it clear that Nigeria’s energy security can no longer afford to wait on international markets to stabilize.