Nigeria may be facing another round of petrol price increases as global crude oil prices continue to climb, with Brent crude reaching $115.18 per barrel on Friday amid growing concerns over potential U.S. military action against Iran.
The development comes as the Dangote Petroleum Refinery and other depot operators are currently dispensing petrol at N1,350 per litre at their gantries.
According to Oilprice.com, Brent crude rose to a five-month high following escalating tensions in the Middle East that have heightened fears about disruptions to global oil supply. The benchmark crude gained 1.8 percent to $115.18 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced 2 percent to $101.56 per barrel, driven by expectations that Washington could resume military operations against Iran.
Reuters reported that Brent touched $115.16 per barrel, its highest level since May 4, as attacks by Houthi militants in Saudi Arabia intensified concerns over energy supply disruptions. Reports also indicated that Saudi Aramco evacuated its headquarters in Dhahran as a precautionary measure.
Brent crude is on track for a weekly gain of approximately 5 percent, marking its third consecutive week of price appreciation.
Market analysts attribute the rally to fears of renewed geopolitical conflict involving the United States and Iran, alongside continued attacks on critical energy infrastructure and international shipping routes.
Investor concerns were further amplified after U.S. President Donald Trump stated on Wednesday that negotiations with Iran were not ongoing and suggested that developments could occur “fairly soon.” The remarks coincided with reports that U.S. and Israeli officials were considering new military strikes following the American midterm elections.
In response, Iran’s military leadership stated that its forces were fully prepared for asymmetric warfare, citing recent enhancements to the country’s defence capabilities.
Regional tensions have also spilled into Saudi Arabia, where Iran-backed Houthi militants have continued their attacks. The U.S. State Department has reportedly advised non-essential personnel to leave the country.
Among the incidents reported were a drone strike on the Shaybah oil field in Saudi Arabia’s Eastern Region, which allegedly left two people dead and two others injured, and an attack on King Fahd International Airport in Dammam that reportedly claimed at least two lives and injured eight others.
Reuters further reported that Saudi Aramco instructed employees at its Dhahran headquarters to work remotely following the attacks.
Particular attention is focused on the Strait of Hormuz, a critical maritime corridor through which a substantial share of global oil exports passes. Any disruption to shipping activities in the area could further restrict supply, increase transportation and insurance costs, and sustain upward pressure on crude prices.
For Nigeria, persistently higher crude oil prices generally translate into increased feedstock and refined-product replacement costs, creating added pressure on domestic petrol prices.
While refiners and importers have not announced any immediate adjustments, rising replacement costs could compel petroleum marketers to pass additional costs on to consumers, further burdening households already contending with elevated fuel prices and inflation.
The Dangote Petroleum Refinery, one of the country’s largest fuel suppliers, most recently increased its petrol gantry price from N1,265 to N1,350 per litre, with the adjustment taking effect on September 12.
