Petrol Marketers Send Serious Warning to NNPC, Say Price May Reach N2,000
- PETROAN has asked NNPC to strengthen domestic refining to protect Nigeria from global oil market shocks
- Rising geopolitical tensions involving Israel, the US and Iran are pushing global oil prices higher
- PETROAN warned that continued global disruptions could push petrol close to N2,000 per litre
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Nigerian National Petroleum Company Limited to repair the state-owned moribund refineries to help shield Nigeria from the impact of global petroleum market disruptions.
Source: UGC
According to a statement by the association’s spokesperson, Dr Joseph Obele, increasing local refining will reduce the country’s exposure to international oil price volatility and help stabilise fuel supply and prices.
PETROAN urges quick restart of local refineries
Speaking in Port Harcourt, the National President of PETROAN, Billy Gillis-Harry, urged the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Ojulari, to facilitate the immediate resumption of production at government-owned refineries.
He specifically mentioned the Area 5 Plant at the Port Harcourt Refinery and the Warri Refinery, which had earlier operated briefly before shutting down for what was described as a profit index evaluation.
Gillis-Harry made the call while delivering a keynote lecture titled “Deconstructing Energy Trilemma” at an event organised by the Department of Petroleum Economics and Policy Studies of Ignatius Ajuru University of Education.
Global conflict pushing fuel prices higher
According to the statement shared with Legit.ng, the PETROAN president linked the rising cost of petroleum products to ongoing geopolitical tensions involving Israel, the United States, and Iran.
He argued that the conflict has intensified attacks on oil routes and infrastructure, creating uncertainty in global supply chains and pushing up crude oil prices.
He warned that the situation could lead to further increases in fuel prices if the tensions continue.
Petrol, diesel prices already rising
Gillis-Harry noted that before the current crisis, petrol sold for about N774 per litre but has now risen above N1,000 per litre, representing an increase of roughly 30%.
He also said diesel prices have climbed significantly, rising from about N950 per litre to over N1,400 per litre, an increase of approximately 49%.
The PETROAN president warned that petrol prices could approach N2,000 per litre, while diesel might reach about N3,000 per litre if global supply disruptions persist.
Domestic refining seen as long-term solution
According to PETROAN, strengthening local refining operations would help reduce Nigeria’s vulnerability to international market fluctuations.
Gillis-Harry noted that Nigeria has abundant crude oil resources under the management of Nigerian National Petroleum Company Limited, which could support stable domestic refining.
He added that government-owned refineries are generally less exposed to international supply disruptions compared to privately owned refineries that depend on imported crude.
Source: UGC
Rising fuel prices could worsen inflation
The PETROAN president warned that continued increases in fuel prices could worsen inflation and raise the cost of transportation and goods across the country.
He explained that petrol remains essential for daily mobility, while diesel is widely used in manufacturing and industrial activities.
Despite the current challenges, Gillis-Harry expressed optimism that the reform policies of Bola Ahmed Tinubu would eventually support economic growth and improve conditions for Nigerians.
Dangote raises petrol, diesel prices again
Legit.ng earlier reported that the Dangote Petroleum Refinery has increased the ex-depot price of petrol, marking the fourth adjustment in its fuel pricing structure.
The refinery has raised the gantry price of petrol from N995 to N1,175 per litre, while it also been increased the price of diesel to N1,620 per litre.
Industry sources said the refinery management has communicated the updated price template to fuel marketers, reflecting the fourth revision since March 2.
Source: Legit.ng
