Middle East crisis: Why fuel price increase is inevitable – PETROAN

Following the escalating crisis in the Middle East, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said an increase in the price of fuel is inevitable.

Joseph Obele, the spokesperson for PETROAN, said the most important thing currently is for the Nigerian government to prioritise a consistent supply of crude oil to the local refinery.

Obele, in a statement issued on Tuesday, quoted the National President, Billy Gillis-Harry, who said the crisis in the Middle East and heightened tension will affect the price of crude.

He also stated that with the growing crisis, there is a need for the government to strengthen local refineries through unfettered crude supply.

“For Nigeria, these developments underscore the fragility of the domestic market’s reliance on imported refined products.

“PETROAN has emphasised that such external shocks directly threaten local pump prices and foreign exchange stability, reinforcing the urgent need to operationalise local refining capacity,” Obele noted.

He added that with the intensified crisis, the benchmark price for crude has spiked and analysts have continued to project that the oil price might exceed $100 per barrel if the conflict persist.

“This upward trend reflects growing concerns over potential supply shortages should shipping activities through the Strait of Hormuz remain restricted,” he noted.

He further called on the Federal Government to rehabilitate the four refineries to reduce Nigeria’s overdependence on imported products.

He said this can be achieved by ensuring that these refineries are restored to full operational capacity.