Nigeria's Fuel Prices Surge Amid Global Oil Disruptions

Nigerians experienced a rise in petrol prices over the weekend, with costs increasing to N1,400–N1,500 per litre from N1,300–N1,350. This surge is attributed to global oil price spikes following a drone attack on Saudi Arabia's East-West pipeline on 13–14 September, which disrupted the flow of 4–5 million barrels a day, approximately 4% of global supply.

Brent crude prices rose to about $107–$108 a barrel, with predictions of further increases. The Dangote Refinery raised its wholesale petrol price from N1,265 to N1,350 per litre on 12 September, leading to higher pump prices as filling stations added their margins.

Nigeria's fuel prices are influenced by global crude prices, the naira-dollar exchange rate, and local refining costs, especially after the removal of subsidies. The article emphasizes that while the price spike is linked to international events, there are underlying structural issues in Nigeria's oil sector that require attention.