Petrol prices in Nigeria could rise further following a surge in international crude oil prices to more than $115 per barrel, driven by fears of renewed military conflict in the Middle East.
Brent crude, the global oil benchmark, climbed by 1.8 per cent to $115.18 per barrel on Friday, while US West Texas Intermediate crude rose by two per cent to $101.56 per barrel.
The increase comes as tensions involving the United States, Israel and Iran raise concerns about possible disruptions to oil production, exports and shipping routes across the Middle East.
According to reports by international financial news outlets, attacks on energy infrastructure and growing security concerns in the region have contributed to the latest rise in crude prices.
The market rally is putting Nigeria’s fuel market under further pressure, with Dangote Petroleum Refinery and other depot operators selling petrol at about N1,350 per litre at their gantries.
Although no new petrol price increase has been announced, a sustained rise in crude oil prices could increase the cost of producing or replacing fuel supplies, potentially leading marketers to charge consumers more.
Brent crude reportedly reached its highest level since May 4, while futures contracts were on course for a weekly gain of approximately five per cent. This would mark the benchmark’s third consecutive week of increases.
The latest price movement follows comments by US President Donald Trump that Washington was not negotiating with Iran, alongside reports that American and Israeli officials were considering further military action.
Iran’s military leadership has also indicated that the country is prepared for asymmetric warfare, adding to concerns about a prolonged regional conflict.
Saudi Arabia has faced additional security threats, including reported attacks on energy infrastructure and other facilities. Saudi Aramco also reportedly directed employees to leave its headquarters in Dhahran and work remotely following attacks linked to Iran-backed Houthi militants.
These developments have heightened concerns about possible interruptions to oil supplies from the region, particularly through the Strait of Hormuz, a strategic passage used to transport a significant proportion of the world’s oil.
Any disruption to shipping through the waterway could further tighten global supplies while increasing transportation, freight and insurance costs.
For Nigeria, rising crude prices could affect domestic petrol prices through changes in crude procurement expenses, refining costs and the cost of imported petroleum products. The final impact will also depend on market conditions, operating costs and supply arrangements.
Dangote Petroleum Refinery previously raised its petrol gantry price from N1,265 to N1,350 per litre, effective September 12.
With international oil prices climbing again, Nigerian motorists and households face the possibility of further increases in fuel costs if the rally continues and suppliers pass on higher expenses.
