Many Nigerians had expected fuel prices to fall after crude dropped to about $92 earlier in the week. But prices rebounded sharply after tensions intensified between the United States, Israel and Iran, with Tehran signalling that the strategic Strait of Hormuz could remain closed.
Market checks showed crude trading between $96 and $117 per barrel depending on grade, a surge driven by fears of disrupted global supply.
The spike comes just days after the Dangote Petroleum Refinery and the Nigerian National Petroleum Company (NNPC) Limited announced reductions in petrol prices. The increases in global crude markets now threaten to reverse those gains.
Across Nigeria, depot prices remain high, with petrol selling around N1,200 per litre or more in several cities.
In Lagos, depots including Matrix, NIPCO and Rainoil sold petrol at between N1,175 and N1,200 per litre. Similar prices were recorded in Warri, Port Harcourt and Calabar.
Transporters and commuters said the sustained high prices are worsening living costs and called on regulators to ensure marketers reflect any price reductions quickly.
Despite the global price surge, NNPC Limited reduced petrol pump prices at its stations to N1,130 per litre in Lagos and N1,165 in Abuja, down from N1,230 and N1,260 respectively.
Petroleum economist Prof. Wumi Iledare said the price swings reflect a sector moving from government-controlled pricing to a market-driven system.
“What we are seeing is price volatility typical of a market in transition,” he said, noting that expectations about future supply and foreign exchange rates often shape pricing decisions.
Meanwhile, the International Energy Agency warned that the conflict could trigger one of the largest supply disruptions in global oil history. Shipping through the Strait of Hormuz has slowed sharply following missile and drone attacks targeting energy infrastructure across the Gulf.
The agency said global crude supply has already fallen by at least eight million barrels per day.
Analysts warn that if the conflict drags on, energy markets could remain unstable, keeping fuel costs high in many countries, including Nigeria.
Frequently Asked Questions
Why did oil prices rise above $100?
Oil prices surged after the Middle East conflict escalated and Iran signalled the possible closure of the Strait of Hormuz, a key global oil shipping route.
How does this affect petrol prices in Nigeria?
Higher crude oil prices often lead to higher petrol and diesel costs, especially in markets still adjusting to deregulated pricing.
What is the Strait of Hormuz?
The Strait of Hormuz is a narrow waterway between Iran and Oman through which about one fifth of the world’s oil supply normally passes.
Has petrol price dropped anywhere in Nigeria?
NNPC Limited recently reduced pump prices at its retail stations to about N1,130 per litre in Lagos and N1,165 in Abuja.
