Nigeria Faces Rising Fuel Prices Amid Global Oil Crisis

Fuel prices in Nigeria are expected to rise further as the global oil market experiences significant supply shocks due to the escalating war between the United States and Iran, which has disrupted crude shipments. Attacks on Saudi Arabia’s oil infrastructure by Iran-backed Houthis have exacerbated the situation.

Currently, petrol prices have surged to N1,500/litre in some regions, with Lagos averaging N1,395/litre. The increase in crude prices, which recently surpassed $108 a barrel, is driven by the suspension of operations on Saudi Arabia's East-West Pipeline following attacks.

While Nigeria, as a major crude oil producer, could benefit from higher export earnings, it remains vulnerable as an importer of refined products. The impact of rising crude prices will depend on domestic production, refinery output, and exchange-rate movements.

The crisis has also affected oil loadings at Saudi Arabia’s Yanbu export hub, raising concerns about the continuity of crude supply to international markets.