Growing tensions in the Middle East have sparked fresh concerns among Nigerians as global crude oil prices climbed above $100 per barrel, raising fears of another increase in domestic fuel costs.
The surge in prices comes amid escalating hostilities involving the United States and Israel in their confrontation with Iran. The situation intensified after Iran’s new supreme leader, Mojtaba Khamenei, reiterated that the strategic Strait of Hormuz could remain effectively closed as a pressure tactic in the ongoing conflict.
The development has unsettled global energy markets, as the Strait of Hormuz serves as one of the world’s most important oil transit routes. Any disruption to shipping in the channel typically triggers sharp movements in crude oil prices.
Earlier in the week, many Nigerians had anticipated a decline in petrol prices after crude oil prices dropped to around $92 per barrel on Wednesday. The expectation was further fueled when both Dangote Petroleum Refinery and Nigerian National Petroleum Company Limited announced slight reductions in petrol prices earlier in the week.
However, those expectations may prove short-lived as crude oil prices rebounded sharply following renewed geopolitical tensions. Market data indicates that crude prices fluctuated between $96 and $117 per barrel depending on the oil grade.
The market had briefly stabilized when the International Energy Agency announced that its 32 member countries agreed to release 400 million barrels of oil from their strategic reserves. The move was intended to cushion the potential global supply shock that could arise from disruptions in the Strait of Hormuz.
Despite the intervention, prices have continued to climb following Iran’s warning that the waterway could remain restricted.
Meanwhile, petrol prices in Nigeria remain elevated, with many filling stations selling Premium Motor Spirit (PMS) at N1,200 per litre or more.
A survey of major depots in Lagos showed that operators including Matrix, Menj, NIPCO, Pinnacle and Rainoil sold petrol at prices ranging from N1,175 to N1,200 per litre.
Similar trends were observed in Warri, where depots such as Danmarna, Matrix, Parker, Prudent and Zamson sold the product between N1,200 and N1,205 per litre.
Industry observers warn that sustained volatility in global crude oil markets could keep fuel prices high in Nigeria in the coming weeks.
