Global oil prices have surged dramatically following Israel's attack on Iran's nuclear facilities, raising concerns about potential increases in petrol prices across Nigeria.
Brent crude, NYMEX Light Sweet, and West Texas Intermediate (WTI) crude futures jumped between 9 and 10 percent shortly after Israel's strike on Iran. Prices reached around $75.15, $73.20, and $74 per barrel respectively, hitting their highest levels since February 2025.
This marks the first time global oil prices have exceeded the Nigerian government's 2025 budget benchmark of $75 per barrel. While this could potentially benefit Nigeria's oil revenue, it simultaneously threatens to drive up domestic fuel costs.
Impact on Nigerian Fuel Prices
Premium Motor Spirit (PMS) currently retails between N870 and N910 per litre in Lagos and Abuja. Market analysts fear these prices could climb higher as global crude oil costs increase, directly affecting transportation and living expenses for Nigerians.
The situation is particularly concerning as Africa's largest refinery plant, Dangote Refinery, relies heavily on crude imports from the United States to maintain its petroleum products production capacity.
Escalating Middle East Tensions
The Israel Defence Forces (IDF) attacked Iran's nuclear site on Friday, prompting Iran to launch a retaliatory strike against Israel. This escalation has triggered concerns among traders about potential disruptions to oil supplies from the energy-rich Middle East region.
The conflict has drawn reactions from the international community, with the United Nations, United States, China, Saudi Arabia, and other nations expressing concern over the situation.
BenriNews reports that tensions further escalated when Israel killed the Chief of Staff of Iranian Armed Forces, Mohammad Bagheri, intensifying the already volatile situation.
As the conflict continues to unfold, Nigerian consumers and policymakers are closely monitoring global oil markets for indications of how domestic fuel prices might be affected in the coming weeks.
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