The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that the pump price of Premium Motor Spirit (PMS), commonly called petrol, may soar to as high as ₦2,000 per litre if the ongoing tension in the Middle East continues to disrupt global oil markets.
PETROAN issued the warning while urging the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently activate domestic refineries to increase local fuel supply and stabilize prices. According to the association, current global geopolitical developments, including conflicts affecting crude oil-producing nations in the Middle East, could lead to further increases in international oil prices, which may be passed on to Nigerian consumers.
Speaking on behalf of the association, PETROAN emphasized that Nigeria, despite being one of Africa’s largest oil producers, still faces recurring fuel shortages and high pump prices because the country relies heavily on imported refined petrol. The group said activating local refineries and ensuring consistent domestic fuel production would reduce dependency on imports and cushion Nigerians from sudden price hikes caused by global oil shocks.
Over the years, Nigeria has experienced frequent fuel price fluctuations, particularly after the government removed subsidies in 2023. The subsidy removal allowed market forces to largely determine petrol prices, which means global crude oil trends, foreign exchange rates, and domestic supply disruptions now directly influence pump prices.
Industry experts say that domestic refineries, including the Dangote Refinery and government-owned plants, have the capacity to supply a significant portion of Nigeria’s fuel demand if fully operational. However, operational challenges, maintenance issues, and occasional crude supply shortages have limited their effectiveness.
PETROAN’s warning comes amid fears that rising international crude prices—exacerbated by tensions in the Middle East—could increase the cost of importing refined fuel, further worsening the situation for Nigerian consumers.
In addition to urging the NNPC to activate refineries, PETROAN also called for better coordination among stakeholders in the petroleum sector to ensure steady fuel supply and avoid panic buying, which can exacerbate price spikes.
The association warned that failing to take swift action could lead to severe fuel shortages, longer queues at petrol stations, and increased transportation costs, affecting businesses and households across the country.
Government officials have previously assured Nigerians that efforts are underway to strengthen local refining capacity, improve supply chain logistics, and monitor market prices to prevent extreme fluctuations. Analysts note that while these measures may stabilize the market in the medium term, external shocks such as international conflicts and crude price volatility remain a major challenge for energy security in Nigeria….See More
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