News Update
Nigerians could soon pay up to N1,000 per litre for petrol, as rising global oil prices fueled by escalating Iran-Israel tensions rattle the international energy market.
The surge follows recent US-Israeli airstrikes on Iran’s nuclear facilities, which US President Donald Trump described as a “preemptive defensive strike.”
In response, Iran has threatened retaliation and is reportedly weighing the closure of the Strait of Hormuz a key maritime route for about 20% of the world’s oil shipments.
As the third-largest oil producer in OPEC, Iran’s role in the global energy supply chain is significant. In the wake of the conflict, Brent crude climbed to around $77 per barrel, with forecasts suggesting it could exceed $80.
Nigerian crude grades like Bonny Light, Brass River, and Qua Iboe have also risen to near $79 per barrel.
Impact on Nigeria’s Fuel Market
Private depot operators and fuel marketers are already reacting to the volatile market. Olatide Jeremiah, CEO of PetroleumPrice.ng, warned that if Brent crude crosses $80, petrol depot prices in Nigeria could reach N1,000 per litre.
Jeremiah also cited temporary supply issues at the Dangote Refinery, which recently resumed bulk sales at N880 per litre. Despite this, many retail stations have raised pump prices to between N930 and N960, especially in the South East and North West. Lagos currently sees the lowest prices, averaging N925.
IPMAN Raises Concerns
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that global market instability and rising foreign exchange rates are driving up domestic fuel prices. He emphasized that even locally refined petrol remains affected, as Dangote sources crude at global market rates.
“In parts of the North, petrol is already selling between N975 and N990 per litre,” Ukadike said. “Logistics costs in remote areas are adding further pressure.”
He added that the cost of lifting and distributing 50,000 litres of fuel has increased substantially, prompting marketers to adjust their pricing models.
