ABUJA, NIGERIA — Global crude oil prices have surged above $100 per barrel for the first time since 2022, triggering a corresponding hike in the price of Premium Motor Spirit (PMS), popularly known as petrol, which now exceeds N1,000 per litre across filling stations in Nigeria.
Brent crude, the international benchmark, rose by more than 16 per cent to $107.97 per barrel, while West Texas Intermediate (WTI) climbed to about $106.22 per barrel as trading resumed on Sunday
. The price surge represents the most significant spike since the Russian-Ukraine conflict in 2022 and follows a weekly gain of approximately 35 per cent for US crude — the largest in futures trading history since 1983.
The rally is directly linked to the escalating conflict in the Middle East involving the United States, Israel, and Iran, which has disrupted shipping through the Strait of Hormuz — a vital maritime corridor through which about 20 per cent of the world’s oil passes daily.
Tanker movements through the strait have dropped dramatically following Iranian warnings and attacks on vessels, effectively halting most maritime traffic.
Major oil producers including Kuwait, Iraq, and the United Arab Emirates have been forced to cut production as storage facilities fill up due to reduced export capacity.
Kuwait announced “precautionary cuts” to its crude production and refinery output, while Iraqi output from three main oil fields in the south has declined by nearly 150,000 barrels per day.
In Nigeria, the impact has been immediate and severe. The Dangote Petroleum Refinery raised its ex-depot price to N995 per litre on Saturday, up from N874 just days earlier
. This has translated to pump prices ranging between N1,050 and N1,190 per litre across major cities including Lagos, Abuja, Kano, and Port Harcourt.
At MRS filling stations in Lagos, petrol now sells for N1,057 per litre, while Mobil outlets charge as high as N1,100
. In Abuja, prices range from N1,052 to N1,105 per litre, with some independent marketers selling above N1,100 . The situation is worse in border communities, with some areas in Ogun State reporting prices as high as N1,400 per litre.
The price hike has triggered an immediate increase in transport fares and food prices nationwide. Commercial bus fares in Lagos have risen from N400 to N500 on some routes, while tricycle operators in Kano and Abuja have doubled their charges.
Food prices are also soaring, with a small bag of pepper jumping from N18,000 to N82,000, and tomatoes increasing from N22,000 to N50,000 for a small bag.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has warned that petrol prices could hit N1,500 per litre and diesel surpass N2,000 if the crisis persists.
He urged the government to urgently rehabilitate local refineries to reduce exposure to international market shocks.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed the price fluctuations to market dynamics under Nigeria’s fully deregulated downstream petroleum regime.
Economists warn that sustained high oil prices could worsen inflation and deepen the cost-of-living crisis for millions of Nigerians already grappling with economic hardship.
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