There are strong indications that Nigeria may experience higher petrol price as crude hit $114 per barrel, yesterday, following dangerous escalation in the United State and Israel war on Iran.
Already, petrol is sold for between N1200 and N1400 per litre in parts of the country.The Middle East conflict escalated on Wednesday following Israeli strikes on Iran’s South Pars gas field, the world’s largest natural gas deposit, prompting Iranian retaliatory attacks on energy facilities in Qatar and Saudi Arabia, a development that is viewed as a major escalation in the war.
Following the attacks, the US President, Donald Trump, threatened to ‘entirely’ blow up the South Pars if the country continues to attack energy facilities in Qatar.
Consequently, energy prices soared, rising from $66 pb to $114pb by as much as five per cent across markets.
Checks, yesterday, showed that Brent crude oil price rose by 6.24 per cent to $114.08 per barrel, the highest since May 2022, while the United States West Texas Intermediate crude rose by 0.97 per cent to $96.33 a barrel.
However, the price of liquified petroleum gas, otherwise known as cooking gas, remained stable as at yesterday in the domestic market.
In Abuja and Lagos, checks by Vanguard revealed that the price of cooking gas remained stable despite volatility in the interntional market. Checks at two major retail outlets – NIPCO Gas and Shore Gas – showed that rates remained at N1,100 per kilogram and N1,150 per kilogram respectively. But in the South-East and South-South, gas went up to N1500 to N1800 per kg.
How petrol price spiked
Recall that the supply disruption, triggered by the Middle East war, had affected petrol prices in Nigeria with prices ranging between N1,267 and N1,300 per litre depending on the fuel station and location as against N730-N880 per litre at the start of the war on February 28.Similarly, Dangote Refinery Plc on March 13, raised the ex-gantry price of its petrol to N1,175 per litre, arguing that it is not immune to the global development as it secures its crude on international benchmarks.
Following the increase in gantry price of petrol by Dangote Refinery, retail outlets in Abuja raised petrol pump on March 3, 2025 with NNPC Retail dispensing at N975 from N875 per litre, while AYM Shafa sold at N960 from N880 per litre.
The marketers adjusted the pump price upwards three days later with NNPC selling at N1,068, while AYM Shafa sold at N1,098 per litre.
A further increase in gantry price by Dangote Refinery triggered a double hike by the marketers on Monday March 9, 2025.
While NNPC raised its pump price to N1,161 per litre in the morning, a further increase was implemented later in the day with rates at N1,267 per litre. Also, AYM Shafa increased its pump price to N1,230 in morning and closed the day N1,300 per litre.
