Israel-Iran War: Rising Global Oil Prices Raise Concerns Over Petrol Affordability In Nigeria

Global oil prices surged sharply following Israel’s attack on Iran, heightening tensions in the Middle East and raising fears of a possible hike in Premium Motor Spirit (PMS) prices in Nigeria.

Brent, NYMEX Light Sweet, and West Texas Intermediate (WTI) crude futures all jumped by 9 to 10 percent, reaching approximately $75.15, $73.20, and $74 per barrel, respectively. These are the highest levels recorded since February 2025.

The escalation has sparked concerns among traders that the ongoing conflict could disrupt oil supplies from the energy-rich region.

On the upside, this marks the first time global oil prices have exceeded Nigeria’s 2025 budget benchmark of $75 per barrel.

However, rising crude oil prices directly impact local fuel costs. Premium Motor Spirit (PMS) currently sells between N870 and N910 per litre in Lagos and Abuja, and the spike in global prices may lead to further increases.

This is particularly significant as the Dangote Refinery, Africa’s largest, depends largely on crude imports from the US to boost its petroleum output.

The surge in prices follows Friday’s Israeli airstrike on Iran’s nuclear facilities. Iran responded with a counterattack, escalating tensions and drawing global concern, with reactions from the UN, US, China, Saudi Arabia, and others.