The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has once again emphasised the urgent need to consolidate and strengthen Nigeria’s domestic refineries through the provision of adequate and consistent crude oil supply.

The call came on the heels of the crisis in the Middle-East that has affected the international oil market, pushing up prices.

This proactive approach is essential to minimizing the impact of external geopolitical shocks on the nation’s petroleum market, according to the association’s National President of PETROAN, Dr. Billy Gillis-Harry.

He expressed deep 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.

According to him, the escalating geopolitical tensions have significantly disrupted global energy markets and supply chains.

This was contained in a press statement the PETROAN National Public Relations Officer Dr. Joseph Obele issued today.

The statement said following the hostilities in the Middle East, particularly around the strategic Strait of Hormuz, through which approximately 20% of the world’s crude oil supply and a significant portion of global LNG pass daily, has triggered sharp volatility in international oil prices and heightened uncertainty regarding supply continuity.

In response to the strikes leading to a near-halt in maritime traffic, operations at the Ras Tanura refinery in Saudi Arabia, the kingdom’s largest with a capacity of 550,000 bpd, were halted following a drone strike that caused a localized fire. Production of liquefied natural gas (LNG) in Qatar was suspended at Ras Laffan and Mesaieed due to the conflict, causing European gas benchmarks to surge by as much as 50%.

Brent crude surged toward $80 per barrel, with analysts warning that a prolonged closure of the Strait could push prices well above the $100 mark.

For Nigeria, these developments underscore the fragility of the domestic market’s reliance on imported refined products. PETROAN has emphasized that such external shocks directly threaten local pump prices and foreign exchange stability, reinforcing the urgent need to operationalize local refining capacity.

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.

The statement reads in part, “Boost public and Investor Confidence. Transparent revenue management enhances Nigeria’s economic credibility and investor attractiveness.

The National President of PETROAN, Billy Gillis-Harry, describes the Executive Order as a courageous and reform-driven decision that aligns with global best practices in fiscal governance. He noted that compelling NNPCL to remit revenues directly reinforces its transformation into a commercially disciplined national energy company.

“Dr Gillis-Harry also commended the Group Chief Executive Officer of NNPCL, Bayo Ojulari, for his proactive approach to reviving the Port Harcourt Refining Company, particularly during the recent inspection engagement with a Chinese technical firm.

“He endorsed the proposal to adopt the Nigeria LNG Limited (NLNG) Bonny model for the Port Harcourt Refinery, stating that such a structure would enhance operational efficiency, transparency, private-sector discipline, and long-term productivity of Nigeria’s refineries.

“He emphasised that adopting a commercially driven governance model similar to NLNG would make the refineries viable, efficient, and globally competitive, while strengthening Nigeria’s energy security and reducing dependence on fuel imports.

“Dr Gillis-Harry reaffirmed PETROAN’s readiness to collaborate with the Federal Government and regulatory institutions to ensure that Executive Order No. 9 strengthens energy security, protects employment, and promotes long-term sectoral stability.”