Brent Crude Hits $107, Nigeria Faces Petrol Price Hike

On Thursday, Brent crude oil prices increased to $107 per barrel from approximately $100 the previous day, raising concerns about another potential increase in petrol prices in Nigeria. Domestic petrol prices have escalated from about N830 per litre before the Middle East crisis to N1,310 or more in some areas.

Prior to the crisis, which began on February 28, international crude oil prices were below $69 per barrel. The surge in prices is attributed to disruptions in global oil supplies, particularly due to the conflict between the United States and Iran, which has affected tanker movements through the Strait of Hormuz.

Reports indicate that oil flows through the strait have decreased significantly, with estimates dropping from six to nine million barrels per day to below two million. The situation has prompted the Dangote Petroleum Refinery and fuel importers to adjust their pricing.

With no ceasefire in sight, traders are reassessing risks to global crude supplies, which could further pressure domestic petrol prices in Nigeria.