On Wednesday, international crude oil prices saw a sharp rise of almost 4 percent, largely attributed to ongoing military actions in the Middle East. Brent crude jumped by 3.75 percent, reaching $94.42 per barrel, while West Texas Intermediate climbed 3.55 percent to hit $87.33 per barrel.
This market volatility stems from increasing risks to maritime navigation through the Strait of Hormuz and the Bab el-Mandeb Strait. Speculation regarding Iran-backed Houthi attempts to block the Bab el-Mandeb passage—which would effectively halt shipments from the Saudi port of Yanbu—has fueled these concerns. Such global instability frequently translates to higher domestic energy costs.
In Nigeria, fuel costs are escalating amid ambiguity over whether the Dangote Refinery will begin selling petrol in US dollars. Pump prices in Abuja have surged to as much as N1,350 per litre, a significant increase from previous lows of N1,155 per litre. This follows a move by the Nigerian National Petroleum Company Limited, NNPCL, which raised its official rate to N1,270 per litre. Prior to this adjustment, private depot operators and retailers had already pushed prices in Lagos and Abuja into the N1,280 to N1,350 range.
