Retail fuel marketers say rising crude prices from the Middle East conflict offer Nigeria a chance to strengthen its gas value chain and expand CNG adoption nationwide……
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government of Nigeria to channel potential gains from rising global oil prices into developing Nigeria’s gas infrastructure.
The association said the country should use the opportunity created by the current surge in crude prices to invest in long-term energy projects rather than immediately spending the additional revenue.
Speaking in an interview with Journalists, PETROAN’s National President, Billy Gillis-Harry, said the anticipated oil windfall should be directed toward strengthening Nigeria’s energy value chain.
His comments come amid escalating tensions in the Middle East involving Iran, Israel, and the United States, a conflict that has disrupted global energy supply and driven crude oil prices higher in international markets.
According to Gillis-Harry, excess revenue earned above Nigeria’s official oil benchmark should be invested strategically in infrastructure that can deliver long-term economic benefits.
“This aligns with my view that excess oil revenue above the budget benchmark should be invested in infrastructure and energy value chains rather than spent immediately,” he said.
He also backed the government’s push to expand the use of Compressed Natural Gas (CNG) as a cheaper alternative fuel for transportation, describing the ongoing gas expansion efforts as a critical step toward reducing transport costs for Nigerians.
“What we should be talking about now is how to provide relief for commuters. The gas revolution being promoted by the government is a step in the right direction,” he added.
Gillis-Harry explained that expanding Nigeria’s gas infrastructure would allow petroleum marketers to establish more CNG daughter stations, while ensuring that enough mother stations exist to supply and distribute gas efficiently across the country.
Oil price windfall opportunity
Nigeria’s 2026 national budget is built on a crude oil benchmark of $64.85 per barrel, but ongoing geopolitical tensions have pushed global oil prices above $100 per barrel, potentially creating additional revenue for oil-producing nations.
However, the country may not fully benefit from higher prices due to declining crude production levels.
Latest figures from the Organization of the Petroleum Exporting Countries (OPEC) show that Nigeria’s crude oil production dropped by 10.67 percent to 1.31 million barrels per day in February 2026.
This decline comes despite the government setting a 2.6 million barrels per day production benchmark for 2026, while adopting a more conservative 1.8 million barrels per day estimate for budget planning.
Push for gas adoption
The Nigerian government has recently intensified efforts to promote CNG as part of broader measures to reduce the impact of rising petrol prices and expand access to cheaper energy alternatives.
Gillis-Harry said PETROAN is well positioned to support the country’s gasification drive, noting that the association’s members operate more than 8,000 filling stations nationwide, many of them located in the southern and north-central regions.
“We are going to pay a courtesy visit to the P-CNGI board to discuss how PETROAN can contribute its quota to ensure that the gasification process succeeds,” he said.
Earlier, Bola Tinubu directed the Presidential Initiative on Compressed Natural Gas (PiCNG) to deploy 100,000 vehicle conversion kits nationwide as part of efforts to cushion the impact of rising petrol prices and promote cheaper fuel alternatives.
However, industry reports indicate the programme has struggled to meet expectations despite attracting more than $2 billion in private sector investments over the past two years.
Energy analysts say that if properly implemented, expanding Nigeria’s gas infrastructure could not only reduce transportation costs for millions of Nigerians but also strengthen the country’s long-term energy security.
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