PETROAN gas infrastructure investment call urges the Federal Government to use oil windfall from rising prices to expand CNG stations and energy infrastructure

The Petroleum Products Retail Outlets Owners Association of Nigeria has urged the Federal Government to channel excess revenue from rising global oil prices into long-term gas infrastructure development to strengthen the country’s energy sector.

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Dr Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, made the appeal on Sunday in an interview with the News Agency of Nigeria while commenting on the impact of tensions in the Middle East and the resulting surge in global crude oil prices.

Dr Billy Gillis-Harry said the additional revenue Nigeria could earn from higher oil prices presents a crucial opportunity for strategic investment rather than immediate spending.

“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,” Dr Billy Gillis-Harry said.

The PETROAN gas infrastructure investment proposal comes as global oil prices have climbed above 100 dollars per barrel following geopolitical tensions in the Middle East.

Nigeria’s 2026 federal budget, however, is benchmarked at 64.85 dollars per barrel, potentially creating additional revenue for the government.

Dr Billy Gillis-Harry described the Federal Government’s push to expand the use of Compressed Natural Gas as a cheaper fuel for transportation as a strategic and forward-looking policy aimed at easing pressure on commuters facing high transport costs.

He said sustained investment in gas infrastructure would enable petroleum marketers to establish more Compressed Natural Gas stations while ensuring that the country has sufficient supply hubs to support nationwide distribution.

According to Dr Billy Gillis-Harry, expanding the gas network would allow marketers to integrate Compressed Natural Gas facilities into existing filling stations, strengthening Nigeria’s transition to alternative fuels.

Nigeria’s oil production levels, however, could limit the extent of the financial gains from higher prices. Data from the Organisation of the Petroleum Exporting Countries shows that the country’s crude oil output fell by 10.67 per cent to 1.31 million barrels per day in February 2026.

Despite the production challenge, Dr Billy Gillis-Harry maintained that strategic investment of oil windfalls in energy infrastructure would create long-term economic value and reduce dependence on petrol.

The association operates more than 8,000 filling stations across Nigeria, mainly in the South and North-Central regions, positioning it as a major stakeholder in the country’s fuel distribution network.

Dr Billy Gillis-Harry said PETROAN plans to collaborate with the Presidential Initiative on Compressed Natural Gas to accelerate the nationwide adoption of gas-powered vehicles and improve fuel affordability.

The initiative forms part of broader government efforts to cushion the effects of rising petrol prices by promoting alternative energy sources.

President Bola Ahmed Tinubu has directed the Presidential Initiative on Compressed Natural Gas to distribute 100,000 vehicle conversion kits across the country to expand access to gas-powered transportation.

However, industry observers note that the programme has faced implementation challenges despite attracting more than two billion dollars in private sector investments over the past two years.

Also read: PETROAN slams Dangote refinery’s petrol pricing, seeks fair competition in Nigerian fuel market

Energy stakeholders believe that stronger investment in gas infrastructure could become a decisive step in unlocking Nigeria’s vast gas potential and delivering a more resilient energy future.