Crude Oil Prices Exceed $117, Threatening Nigeria's Petrol Costs

Crude oil prices surged above $117 per barrel, marking the highest level since April, as markets reacted to fears of renewed U.S. military action against Iran and threats to energy infrastructure in the Middle East. Nigeria's crude benchmark, Brent, rose by approximately 3.5 percent before easing to just above $116, still about 2.7 percent higher.

This surge has raised concerns in Nigeria that petrol prices may increase in the coming weeks. Despite being a crude oil producer, Nigeria heavily relies on imported refined petroleum products, meaning that sustained increases in global crude prices typically raise the landed cost of petrol.

Higher crude prices increase production costs for domestic refiners like Dangote Petroleum Refinery and raise costs for the Nigerian National Petroleum Company Limited and independent fuel importers. The removal of petrol subsidies has led to quicker transmission of international price changes to local pump prices.

A prolonged Brent rally above $117 could compel marketers to adjust ex-depot prices, affecting retail prices nationwide.