Amid escalating tensions between Israel and Iran, oil marketers in Nigeria have hiked petrol depot prices as crude oil surged 8.8% to $74 per barrel. With fears of Hormuz Strait closure, analysts predict further rises, but warn Nigeria’s potential gains may be tempered by inflation, debt obligations, and supply issues.
- 10 major marketers raise petrol prices; Emadeb leads with N845/litre
- Crude oil jumps from $68 to $74pb amid Iran-Israel conflict
- Iran’s threat to block Hormuz raises fears for the global oil supply
- Experts say Nigeria may see a revenue boost, but inflation looms
- JP Morgan warns oil could hit $130 if crisis worsens
Global crises rarely offer Nigeria straightforward benefits. While rising crude prices signal higher forex earnings and stronger reserves, the deregulated downstream sector means consumers will feel the heat first. The government may earn more, but with most crude pre-sold for loans and refineries like Dangote paying international prices, Nigerians could see higher transport costs and inflation without relief.
As conflict simmers in the Middle East and oil prices climb, the true test for Nigeria lies in managing windfalls wisely. Without refining capacity or fiscal discipline, rising revenues may once again fail to cushion the blow for ordinary citizens.
