PETROAN Urges Stronger Local Refineries Amid Middle East Crisis
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed calls for Nigeria to strengthen its domestic refineries, citing the escalating Middle East crisis and its impact on global oil markets.
“Consolidating and strengthening Nigeria’s refineries through adequate crude supply is urgent,” said PETROAN National President, Dr. Billy Gillis-Harry. He warned that external shocks could destabilize local pump prices and foreign exchange.
The association expressed concern over military escalation involving the United States, Iran, Israel, and allied nations, noting that the conflict has disrupted global energy supply chains. “These geopolitical tensions have significantly disrupted energy markets,” Gillis-Harry said.
A statement by PETROAN’s Public Relations Officer, Dr. Joseph Obele, highlighted the strategic importance of the Strait of Hormuz, through which 20% of global crude and LNG shipments pass. Recent strikes have halted operations at Saudi Arabia’s Ras Tanura refinery and suspended LNG production in Qatar, driving European gas prices up by 50%.
Brent crude surged toward $80 per barrel, with analysts warning prices could exceed $100 if disruptions persist. PETROAN stressed that Nigeria’s reliance on imported refined products leaves the domestic market vulnerable.
The statement also praised the Federal Government’s Executive Order No. 9, compelling NNPCL to remit revenues directly. Gillis-Harry described it as “a courageous and reform-driven decision that aligns with global best practices.”
He commended NNPCL’s CEO, Bayo Ojulari, for efforts to revive the Port Harcourt Refinery, including engagement with a Chinese technical firm. Gillis-Harry endorsed adopting the Nigeria LNG Bonny model, saying it would “enhance operational efficiency, transparency, and private-sector discipline.”
“Adopting a commercially driven governance model similar to NLNG would make refineries viable, efficient, and globally competitive,” Gillis-Harry added, reaffirming PETROAN’s readiness to collaborate with government to strengthen energy security and reduce dependence on imports.