LAGOS – The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to strengthen domestic refining capacity.
This is to shield Nigeria from global petroleum market shocks.
Dr Billy Gillis-Harry, National President, PETROAN, on Monday 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.
Projecting future trends, he warned that Premium Motor Spirit (PMS) could rise close to N2,000 per litre while Automotive Gas Oil (AGO), may approach N3,000 per litre if the situation persists.
He said that sustained drone and missile attacks now threaten 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, has risen to N1,400 per litre and above, an increase of about 49 per cent,” he said. 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.
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