Petrol Price Could Hit N2,000/Litre If US–Iran War Persists, PETROAN Warns

By: Sunday Ameh

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the price of petrol in Nigeria could rise to as high as N2,000 per litre if the ongoing conflict in the Middle East continues.

In a statement issued on Monday, the national president of PETROAN, Billy Gillis-Harry, said the price of diesel, also known as Automotive Gas Oil (AGO), could also increase to about N3,000 per litre under the same circumstances.

“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” Gillis-Harry said.

He noted that 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.

Gillis-Harry therefore called on Bayo Ojulari, Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC), to facilitate the immediate commencement of production at Nigeria’s local refineries.

He specifically urged the activation of the Area 5 plant at the Port Harcourt Refinery and the Warri Refinery to boost domestic supply.

According to him, revamping Nigeria’s refineries for local production would help reduce the country’s exposure to volatility in the international market, particularly since Nigeria has abundant crude oil resources under the custody of NNPC.

The PETROAN president also noted that government-owned refineries are less vulnerable to global supply disruptions compared to privately-owned refineries that depend on imported crude.

He warned that continuous increases in fuel prices could worsen inflation, trigger job losses, deepen economic hardship, and raise transportation costs across the country.

“PMS remains essential for daily mobility, while AGO is vital for manufacturing and industrial operations,” Gillis-Harry said.

He added that the ongoing conflict involving the Israel, the United States and Iran is pushing global petroleum prices to alarming levels.

“Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains,” he said.

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