Middle East Crisis: Association Wants Local Refineries Strengthened

Following the escalating crisis in the Middle East, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has stressed the urgent need to consolidate and strengthen Nigeria’s domestic refineries by providing adequate and consistent crude oil supply.

The association said such a proactive approach is essential to minimising the impact of external geopolitical shocks on the country’s petroleum market.

Speaking to newsmen in Port Harcourt, PETROAN national president, Dr Billy Gillis-Harry, said recent geopolitical tensions had seriously disrupted global energy markets and supply chains.

Gillis-Harry expressed concern over the ongoing military escalation involving the United States, Iran, Israel and allied nations, and its far-reaching implications for the global energy industry, particularly Nigeria’s petroleum sector.

“Hostilities in the Middle East, especially around the strategic Strait of Hormuz, through which approximately 20 per cent of the world’s crude oil supply passes daily, have triggered sharp volatility in international oil prices and heightened uncertainty regarding supply continuity.

“As the conflict intensifies, global crude oil benchmarks have surged, with analysts projecting that prices could exceed $100 per barrel if disruptions persist. This upward trend reflects growing concerns over potential supply shortages should shipping activities through the Strait of Hormuz remain restricted,” he said:

The PETROAN leader noted that any sustained increase in crude oil prices will inevitably be reflected at petroleum retail outlets across Nigeria.

Gillis-Harry said: “If the crisis continues, the impact will extend beyond pump prices to affect foreign exchange stability, domestic fuel pricing structures and overall inflation levels within the country.”

In view of these developments, PETROAN asked the federal government to adopt urgent and strategic actions to safeguard Nigeria’s energy security, and to encourage and prioritise local refineries by ensuring a steady crude oil supply and creating enabling policies that support optimal operations.