Petrol Could Hit N2,000 Per Litre If US-Iran War Persists - PETROAN

The Petroleum Products Retail Outlets Owners Association of Nigeria has warned that the price of petrol in Nigeria could rise to about N2,000 per litre if the ongoing conflict involving United States and Iran continues.

In a statement on Monday, the National President of PETROAN, Billy Gillis-Harry, said diesel prices could also surge to nearly N3,000 per litre if the situation persists.

“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” he said, noting that petroleum product prices in both international and domestic markets are likely to increase sharply with no clear end to the conflict.

Gillis-Harry urged the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s refineries, particularly the Area 5 plant at the Port Harcourt Refinery and the Warri Refinery.

He stressed that reviving local refining capacity is critical to reducing the country’s exposure to international market volatility, noting that Nigeria has abundant crude oil resources under the custody of the national oil company.

According to him, government-owned refineries are less vulnerable to global supply disruptions compared to privately owned facilities that rely heavily on imported crude.

Gillis-Harry warned that sustained increases in fuel prices could worsen inflation, raise transportation costs and lead to higher prices of goods and services across the country.

He noted that petrol remains essential for daily transportation while diesel plays a key role in manufacturing and industrial operations.

The PETROAN president added that the ongoing conflict involving Israel, the United States and Iran is pushing global oil prices upward, with drone and missile attacks threatening key oil routes and infrastructure.

He, however, expressed optimism that the reform policies of Bola Tinubu would eventually bring relief to Nigerians and stimulate economic growth.

On Monday, global crude oil prices crossed the $100 per barrel mark, the highest level since July 2022, as tensions in the Middle East continued to escalate.

The surge has already triggered increases in petrol prices across several filling stations in Nigeria.