Nigeria’s downstream petroleum sector may face fresh pricing pressures as escalating tensions in the Middle East continue to disrupt global oil supply chains, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned.
The association said growing military hostilities involving the United States, Iran, Israel and allied nations have heightened volatility in international crude markets, raising concerns over the stability of Nigeria’s fuel supply and pump prices.
Speaking in Abuja, PETROAN National President, Dr. Billy Gillis-Harry, expressed concern over developments around the strategic Strait of Hormuz — a critical global oil transit route through which roughly 20 percent of the world’s crude supply passes daily.
According to the association, disruptions in the region have already triggered sharp price movements. Brent crude climbed toward $80 per barrel, while analysts project prices could exceed $100 if the conflict persists and maritime traffic remains restricted.
Operations at key energy facilities have also been affected. Saudi Arabia’s Ras Tanura refinery, with a production capacity of 550,000 barrels per day, was reportedly impacted following a drone strike that caused a localized fire. In Qatar, LNG production at Ras Laffan and Mesaieed was suspended, sending European gas benchmarks up by as much as 50 percent.
Implications for Nigeria
PETROAN noted that Nigeria’s reliance on imported refined petroleum products leaves the domestic market vulnerable to such external shocks. Any sustained rise in crude oil prices, the association said, will likely translate into higher fuel pump prices, increased foreign exchange pressure, and broader inflationary effects across the economy.
The group stressed that these developments reinforce the urgency of strengthening Nigeria’s local refining capacity to reduce exposure to global supply disruptions.
Call for Strategic Action
In response to the unfolding crisis, PETROAN called for immediate and strategic measures to safeguard national energy security. Key recommendations include ensuring consistent crude oil supply to domestic refineries and sustaining policies such as the Naira-for-Crude initiative to ease foreign exchange pressures.
The association also urged the rehabilitation and full operational restoration of Nigeria’s four government-owned refineries to reduce dependence on fuel imports.
PETROAN said it will continue to monitor global developments and advocate policies aimed at stabilising the domestic fuel market, protecting consumers from excessive price shocks, and encouraging long-term investment in petroleum infrastructure.
The group further emphasised the importance of diplomatic engagement and peaceful conflict resolution in energy-producing regions to safeguard global supply chains and Nigeria’s economic interests.