The Petroleum Products Retail Outlets Owners Association of Nigeria has called on the Federal Government to prioritise investment in gas infrastructure, urging that additional revenue from rising global oil prices be redirected into long-term energy development.
Speaking in response to the recent surge in crude prices, PETROAN President Billy Gillis-Harry said the current market conditions present a strategic opportunity for Nigeria to strengthen its domestic energy base rather than rely on short-term fiscal spending.
Global oil prices have climbed above $100 per barrel amid escalating tensions in the Middle East, particularly involving Iran, creating the potential for increased revenue inflows for oil-producing countries, including Nigeria.
According to Gillis-Harry, excess earnings above the government’s budget benchmark should be channelled into critical infrastructure, especially within the gas value chain, to support long-term energy security and economic stability.
He noted that expanding gas infrastructure would accelerate the adoption of Compressed Natural Gas (CNG) as an alternative fuel, helping to reduce pressure on consumers affected by rising petrol and transportation costs. He added that improved infrastructure would enable marketers to establish more CNG daughter stations, supported by an efficient network of mother stations for supply and distribution.
Nigeria’s 2026 budget is benchmarked at $64.85 per barrel, significantly below current market levels, indicating potential fiscal gains. However, the impact of higher prices may be moderated by declining crude oil production. Data from the Organization of the Petroleum Exporting Countries shows that Nigeria’s output dropped to about 1.31 million barrels per day in February 2026, representing a decline of over 10 percent.
Despite these challenges, PETROAN expressed support for ongoing government initiatives aimed at expanding gas usage nationwide. The association noted that its members operate more than 8,000 retail outlets across the country, positioning it to play a key role in advancing the gas adoption strategy.
As part of its engagement, the group plans to collaborate with the Presidential Compressed Natural Gas Initiative to support the rollout of gas infrastructure and promote wider utilisation of CNG in Nigeria’s transport sector.
The Federal Government has recently intensified efforts to drive gas adoption, including plans to deploy 100,000 vehicle conversion kits nationwide to encourage a shift from petrol to more affordable alternatives.
Industry stakeholders, however, note that while the gas programme has attracted significant private sector interest, implementation challenges remain, highlighting the need for sustained investment and coordinated execution to achieve meaningful impact.