Economy

Oil Prices Surge as Middle East Tensions Hit Nigeria Petrol Costs

Published

7 months ago

March 20, 2026

Q Tinny

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.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.