PETROAN Warns Petrol Could Hit ₦2,000 Per Litre Amid Global Oil Disruptions
Fuel Price Spike Risk Grows as Middle East War Shakes Global Oil Supply
Nigeria’s fuel marketers have warned that the pump price of petrol could rise to as much as ₦2,000 per litre if the ongoing geopolitical tensions in the Middle East continue to disrupt global oil markets.
The warning was issued by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which said escalating conflict involving major powers in the region is already pushing international crude oil prices higher.
According to PETROAN National President Billy Gillis-Harry, sustained hostilities involving countries such as Israel, the United States, and Iran could significantly affect global energy supply chains, triggering sharp increases in fuel prices worldwide.
Potential Impact on Nigeria’s Fuel Market
PETROAN said the price of Premium Motor Spirit (PMS) commonly known as petrol could approach ₦2,000 per litre, while diesel prices might rise to nearly ₦3,000 per litre if the crisis persists.
The association explained that the ongoing conflict has heightened risks to critical oil infrastructure and shipping routes in the Middle East, a region responsible for a significant share of global crude oil supply. Disruptions to these supply routes often lead to higher global oil prices, which then translate into higher fuel costs in importing countries such as Nigeria.
Market analysts note that crude oil prices recently surged above $100 per barrel, reflecting heightened uncertainty in the global energy market as tensions in the region intensify.
Nigeria’s Exposure to Global Oil Price Volatility
Despite being one of Africa’s largest crude oil producers, Nigeria remains highly vulnerable to global fuel price fluctuations because the country still relies heavily on imported refined petroleum products.
As a result, changes in international crude prices typically feed directly into domestic petrol prices, particularly following the removal of fuel subsidies and the liberalisation of Nigeria’s downstream petroleum sector.
Energy analysts say the country’s limited domestic refining capacity leaves it exposed to global supply shocks, making local fuel prices sensitive to international market developments.
Call for Urgent Domestic Refining
To mitigate the impact of rising global oil prices, PETROAN urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to accelerate the rehabilitation and operation of local refineries.
Specifically, the association called for the immediate activation of government-owned refineries, including facilities in Port Harcourt and Warri, which could help reduce reliance on imported petroleum products.
According to the marketers, strengthening domestic refining capacity would help stabilise supply and reduce the country’s vulnerability to geopolitical disruptions in global energy markets.
Economic Implications
Industry stakeholders warn that a significant increase in petrol prices would have widespread economic consequences across Nigeria.
Fuel costs directly affect transportation, manufacturing, logistics, and electricity generation. As a result, higher pump prices typically translate into increased costs of goods and services, further intensifying inflationary pressures.
PETROAN cautioned that continued fuel price increases could deepen economic hardship, raise transportation fares, and reduce business activity in various sectors of the economy.
Outlook
The trajectory of fuel prices in Nigeria will largely depend on developments in the Middle East and global crude oil markets in the coming weeks.
Energy analysts say that while domestic reforms and expanded refining capacity could provide some protection against international shocks, Nigeria’s fuel market will remain closely tied to global oil price movements as long as the country continues to rely heavily on imported refined petroleum products.
