Crude Oil Prices Near $100, Fuel Price Hike Looms in Nigeria

International crude oil prices have surged towards $100 per barrel, with Brent crude reaching $97.29 per barrel on Thursday, marking a gain of $1.66 or 1.7 percent. This increase is driven by escalating tensions in the Middle East, concerns over supply disruptions, and tightening global inventories.

The International Energy Agency (IEA) reported that global refinery crude throughputs rose in July but remained nearly 5 million barrels per day below last year's levels. The IEA warned that disruptions to refined-product exports from the Middle East and attacks on Russian refineries have reduced refining capacity, impacting global supplies of petrol and diesel.

For Nigeria, sustained crude prices near or above $100 could heighten cost pressures for refiners, importers, and petroleum marketers. Despite an expansion in domestic refining capacity, fuel pricing in Nigeria is still influenced by crude prices and other operational costs.

Recent increases in diesel and petrol prices reflect these pressures, with diesel prices rising by ₦100 per litre from September 4, following a ₦65 per litre increase in petrol.