The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has sounded the alarm over the potential impact of the escalating Middle East crisis on Nigeria’s petroleum market, urging the government to prioritize domestic refining capacity.
Addressing journalists in Abuja on Tuesday, PETROAN President Dr. Billy Gillis-Harry expressed deep concern over the conflict involving the United States, Iran, Israel, and allied nations, noting that the situation has caused significant disruptions in global energy supply chains.
He highlighted the strategic importance of the Strait of Hormuz, through which roughly 20% of the world’s crude oil and a substantial portion of global liquefied natural gas (LNG) pass daily.
“Following recent strikes, operations at the Ras Tanura refinery in Saudi Arabia, the kingdom’s largest with a capacity of 550,000 barrels per day, were halted due to a localized fire from a drone attack,” Dr. Gillis-Harry said. “Meanwhile, Qatar has suspended LNG production at Ras Laffan and Mesaieed, sending European gas benchmarks surging by as much as 50%.”
The president warned that these developments have triggered sharp volatility in international oil prices, with Brent crude approaching $80 per barrel, and analysts projecting that prices could exceed $100 if the conflict persists.
For Nigeria, a country still heavily reliant on imported refined products, the crisis underscores the fragility of domestic fuel supply, with potential knock-on effects for pump prices, foreign exchange stability, and overall inflation.
Dr. Gillis-Harry emphasized that sustained increases in global crude prices would inevitably be reflected at retail outlets across the country. “Every disruption in international markets affects the Nigerian consumer directly,” he said.
To mitigate these risks, PETROAN called for urgent and strategic measures to strengthen the nation’s energy security.
These include operationalizing local refineries through steady crude supply, revamping the four government-owned refineries to full capacity, and sustaining policies like the Naira-for-Crude arrangement to stabilize domestic fuel prices.
“The current situation is a wake-up call,” Dr. Gillis-Harry said. “Nigeria must reduce its dependence on imported petroleum products and ensure our refineries can withstand external shocks. Policy support, investment in infrastructure, and consistent crude allocation are critical.”
The association also urged diplomatic engagement and peaceful resolution in energy-producing regions to protect global petroleum supply chains.
PETROAN said it would continue monitoring developments closely and advocating for measures that shield consumers from excessive price shocks while promoting long-term stability in Nigeria’s petroleum sector.