Brent Crude Surpasses $109 per Barrel Amid Escalating Middle East Tensions
Nigerian consumers are facing significant pressure from rising petrol prices as Brent crude surpassed $109 per barrel on Monday. This surge in crude prices is amid escalating tensions around key global oil shipping routes, particularly the Strait of Hormuz.
The crisis around the Strait of Hormuz has raised fears of disruptions to global oil supplies, with reports indicating that a prolonged disruption to Saudi Arabia's East-West pipeline could affect a significant volume of global oil supplies. The Bab al-Mandab Strait is also under pressure after Yemen's Houthi fighters launched dozens of missiles and drones at Saudi Arabia's King Khalid Airbase.
The rise in crude prices has put additional pressure on the Nigerian downstream market, where consumers are already grappling with rising pump prices. Petrol prices have climbed to about N1,400 or N1,500 per litre in some parts of the country, following a series of increases in the ex-depot and gantry prices of the commodity.
The Dangote Petroleum Refinery had increased its gantry price of petrol from N1,265 to N1,350 per litre on Saturday, representing an increase of N85 per litre. This is the fourth upward adjustment in the refinery's gantry price since August 21, when petrol sold for N1,165 per litre.