Global crude oil prices have risen sharply following renewed military confrontations between the United States and Iran, pushing Brent crude to $79 per barrel and complicating efforts by governments worldwide including Nigeria to reduce pump prices for consumers.
Brent crude reached an intra-day high of $79 per barrel before settling at $78, a significant increase from the $70 level recorded just two days earlier.
The rise followed reports of new military escalation after the US military targeted more than 80 Iranian sites on Tuesday, in response to alleged attacks on vessels transiting the Strait of Hormuz a route that transports roughly one-fifth of global fuel supply.
Analysts note that although no oil production has been actually disrupted, traders have priced in a fresh geopolitical risk premium given the Middle East’s large role in global crude exports and the vulnerability of key shipping channels.
Nigeria’s petrol prices are closely linked to global crude benchmarks and foreign exchange rates, meaning a sustained increase in Brent could halt or reverse recent government efforts to lower pump prices.
Just this week, the federal government met with Dangote Refinery and oil marketers to push for pricing that reflects the earlier drop in crude to $70 per barrel — an effort now hindered by the renewed price surge.
Oil and gas analyst Dr Marcel Okeke argued that Nigeria’s best defence against this volatility is developing a more competitive and robust local refining industry, with more Dangote-style export-capable refineries.
He noted that petrol prices had fallen to around N800 before the earlier US-Israel-Iran crisis began in February, and warned that continued reliance on imported refined products leaves Nigeria vulnerable to external shocks.
Okeke urged the government to accelerate the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries, emphasising that increasing local refining capacity is the only lasting hedge against global supply disruptions.
Administrator and Writer
