Nigeria’s downstream petroleum sector faces renewed pressure as experts warn crude oil prices could reach $130 per barrel if tensions between the United States and Iran escalate further, tightening global supply. The conflict has already pushed crude prices above $100 per barrel from about $85 per barrel, driving Premium Motor Spirit PMS, popularly known as petrol, to over N1,000 per litre in several parts of the country.
Industry stakeholders told Vanguard that the US Iran war shows no signs of ending soon. Olajide Jeremiah, CEO of petroleum.ng, stated that the prolonged conflict, combined with potential destruction of major oil and gas installations, would continue to affect operations and keep global crude prices elevated. Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria OGSPAN, also emphasized that speculation and supply disruptions from the conflict are likely to push oil prices higher.
JPMorgan Chase projected that Brent crude could hit $120 per barrel if the Middle East conflict results in sustained disruption of oil flows through the strategic Strait of Hormuz. In Nigeria, petrol prices have fluctuated in response, reaching N1,100 per litre on Friday before ilizing at N1,040 in Lagos and N1,080 in Abuja. The Dangote Refinery recently increased its ex-gantry price of petrol to N995 per litre.
Vanguard checks revealed that NNPC retail stations sold petrol at N1,040 per litre, up N47 from the previous N993 per litre. Other distributors such as Emadeb Energy and PM Petroleum also sold petrol at N1,040 per litre, while in Abuja Gegu Oil Nigeria sold at N1,050 and Empire Energy at N1,080 per litre. Experts warn that if the conflict continues, Nigerians may experience further increases in transport and household fuel costs, with wider economic implications.
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