Nigeria’s petroleum retail sector has raised urgent concern over the impact of escalating military tensions in the Middle East on the country’s fuel market, warning that sustained disruptions to global supply chains could push crude oil prices above $100 per barrel and send shockwaves through Nigeria’s economy.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) highlighted the vulnerability of global energy flows through the Strait of Hormuz — a chokepoint through which approximately 20% of the world’s daily crude oil supply passes — as hostilities involving the United States, Iran, Israel, and allied nations continue to intensify.
PETROAN National President Dr. Billy Gillis-Harry warned that any sustained surge in global crude benchmarks would be directly reflected at petrol stations across Nigeria, with knock-on effects for foreign exchange stability, domestic fuel pricing structures, and inflation.
In response, PETROAN called for immediate and strategic action on multiple fronts. The association urged authorities to ensure a steady supply of crude oil to local refineries and create enabling policies for optimal operations, while also sustaining the Naira-for-Crude policy to reduce pressure on foreign exchange. It called for the urgent rehabilitation of the four government-owned refineries to restore full operational capacity, and for proactive monitoring of global market developments to shield consumers from excessive price shocks.
The association also advocated for sustained investment in petroleum infrastructure and for diplomatic engagement aimed at peaceful resolution in energy-producing regions, framing both as essential to Nigeria’s long-term energy security.
Source: orientalnewsng.com