The Digest:
Long queues are building at MRS filling stations selling petrol below ₦1,000 per litre, as most other marketers hike prices above the psychological threshold amid the escalating Middle East conflict. MRS stations along the Ibadan/Lagos Expressway still sell at ₦937, attracting crowds, while Eterna Plc has raised prices to ₦1,040, North West Capital Oil and Fatgbems to ₦1,030, and Mobil to ₦1,025. Some NNPC and TotalEnergies stations remain shut, raising questions about product availability. The price surge follows Dangote Refinery's hike to ₦874 per litre (from ₦774) as global crude prices soared above $80. Economist Paul Alaje had warned prices could hit ₦1,000 if the Iran-US-Israel conflict worsens. The Strait of Hormuz closure, through which 20% of global oil transits, threatens to push prices toward $200, with an Iranian general warning: "We will burn any ship" seeking to navigate the strait.
Key Points
- The ₦1,000 threshold has been breached across multiple stations, with some at ₦1,040.
- MRS's ₦937 price creates queues as consumers seek relief from hikes.
- Station closures suggest potential supply disruptions beyond pricing.
- The Strait of Hormuz closure threatens global energy catastrophe with $200 oil possible.
- Alaje's ₦1,000 projection has materialized faster than anticipated.
Sources: Market Survey, Economist Comments
