Nigeria Fuel Price Surge Warning Amid Middle East Conflict

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices in Nigeria could surge to N2,000 per litre and diesel to N3,000 per litre if the ongoing Middle East conflict, involving Israel, the United States, and Iran, persists. This conflict is pushing global petroleum prices to alarming levels, with crude oil recently crossing $100 per barrel. PETROAN's National President, Billy Gillis-Harry, emphasized that sustained drone and missile attacks threaten critical oil routes, creating uncertainty in global supply chains. He urged the Group Chief Executive Officer of the Nigerian National Petroleum Corporation===NNPC Limited, Bashir Ojulari, to facilitate the immediate commencement of production at Nigeria's local refineries, specifically the Nigerian National Petroleum Company===Port Harcourt Refinery (Area 5 plant) and the Nigerian National Petroleum Company===Warri Refinery. Local refining is seen as crucial to reduce Nigeria's exposure to international market volatility, despite the country's abundant crude oil resources. The association warned that continued fuel price increases would worsen inflation, cause job losses, deepen economic hardship, and raise transportation and goods costs across Nigeria. While acknowledging President Bola Tinubu's reform policies, PETROAN stressed the urgent need for domestic refining capacity to protect the economy from future global energy shocks.