Nigeria petrol price surge follows Brent crude rally above $119 as Middle East tensions threaten supply, fueling domestic fuel cost increases

Oil prices surged sharply on Thursday, with Brent crude climbing above $119 per barrel, as escalating tensions in the Middle East rattled global energy markets and sparked fresh fears of supply disruptions, directly impacting the Nigeria petrol price surge.

Also read: Iran Orders Strait of Hormuz Closed as Oil Prices Surge

The spike follows Iranian attacks on key regional energy infrastructure in retaliation for Israel’s strike on the South Pars gas field, heightening fears of a wider conflict that could disrupt critical oil and gas flows.

In Nigeria, the international price rally is already affecting the domestic downstream market.

The gantry price of Premium Motor Spirit (PMS), commonly known as petrol, increased to N1,200 per litre from N1,175.

Depots such as Parker and Zamson adjusted their prices upward, reflecting the pass-through of global crude volatility in a deregulated market.

Retail outlets across Lagos have also responded. MRS stations, partners of the Dangote Petroleum Refinery, sold petrol at around N1,232 per litre, Mobil outlets at N1,235, while AP and NNPC stations hovered at N1,225, signalling a broad-based rise.

Analysts note that despite improvements in local refining, Nigeria’s fuel market remains highly sensitive to international crude benchmarks, exchange rates, and logistics costs, sustaining elevated pump prices.

Motorists have expressed frustration, warning that rising petrol costs are driving up transport fares and commodity prices, and have called on the federal government to implement targeted measures to cushion households amid persistent inflation.

Globally, Brent futures hit $119.13 per barrel, near a three-year peak, while West Texas Intermediate (WTI) traded higher but at a notable discount to Brent.

Middle East benchmarks, including Dubai and Oman crude, recorded record premiums amid fierce competition for available barrels.

Attacks on energy infrastructure in Qatar, Saudi Arabia, and Kuwait have disrupted operations, including the Ras Laffan industrial hub and Shell’s Pearl gas-to-liquids plant, further tightening global supply.

Concerns over tanker traffic and strategic transit routes such as the Strait of Hormuz have heightened market volatility.

The US Federal Reserve held interest rates steady while highlighting inflation risks partly driven by rising energy costs.

Simultaneously, Washington is reportedly exploring easing sanctions on Iranian oil, potentially releasing stranded barrels to stabilise supply.

Also read: US-Israel-Iran Conflict Threatens Global Oil Prices, New Zealand Fuel Costs

For Nigeria, the immediate impact is significant, as international crude volatility translates into higher petrol prices, increasing economic hardship and complicating efforts to control inflation amid ongoing macroeconomic pressures.