U.S. Israel –Iran war: Fuel pump price may hit N2000 if situation persists, PETROAN warns
Fuel Station
.Tasks NNPC on domestic refining to curb global shocks
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the pump price of Premium Motor Spirit (PMS), otherwise called petrol could rise close to N2,000 per litre while Automotive Gas Oil (AGO), may approach N3,000 per litre if the conflict between the United States of America, Israel and Iran persists.
Dr Billy Gillis-Harry, National President, PETROAN, gave the warning on Monday, noting that sustained drone and missile attacks in the region now threatened critical oil routes and infrastructure, creating uncertainty in global supply chains.
“With no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days.
“Before the crisis, PMS, known as fuel sold at N774 per litre but now sells above N1,000 per litre, representing an increase of about 30 per cent.
“Diesel, previously sold at N950 per litre but has risen to N1,400 per litre and above, an increase of about 49 per cent,” he said.
He urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen domestic refining capacity.
This, he said, is to shield Nigeria from global petroleum market shocks.
The PETROAN president called on the Group Chief Executive Officer, NNPC Ltd., Mr Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries.
Gillis-Harry said that production at the refineries was paramount, particularly the Area five Plant at Port Harcourt Refinery and the Warri Refinery, which previously operated briefly before shutdown for profit index evaluation.
He said that this had become imperative due to the ongoing conflict involving Israel, the United States and Iran, which was pushing global petroleum prices to alarming levels.
Gillis-Harry said that rehabilitating Nigeria’s refineries for immediate domestic production was critical.
On local refining, he said that it would reduce exposure to international market volatility, especially as Nigeria had abundant crude oil resources under the custody of NNPC Ltd.
He said that government-owned refineries were less vulnerable to global supply disruptions compared to privately owned refineries dependent on imported crude.
The PETROAN president said that continued fuel price increases would worsen inflation, cause job losses, deepen economic hardship, increase transportation costs, and raise prices of goods and services nationwide.
“Fuel remains essential for daily mobility, while diesel is vital for manufacturing and industrial operations,” he said.
He commended President Bola Tinubu for the ongoing bold policies to reform the oil and gas sector, and called on Tinubu to direct the immediate rehabilitation and commencement of production at the government-owned refineries.
According to him, this will ultimately bring relief to citizens and stimulate economic growth.
