Nigerian citizens witness another round of increased fuel, transport, and food prices as the price of crude oil hits $100 per barrel due to escalating tensions in the Middle East over the US-Iranian war
Nigerians are in for another round of hardship as transport fares have increased due to increase in the price of fuel which is selling at N1,400 at different locations in the country. The latest increase in the pump price of fuel is a result of the war in the Middle East between Iran and United States. The escalating tensions in the troubled region have led to the increase in the price of crude oil which now sells at $100 per barrel.
Citizens are witnessing another round of inflationary pressure as the increase in the pump price of Premium Motor Spirit (PMS) is resulting in the increase of the prices of food items, transport and household items.
Industry operators, however, agreed that the Federal Government stands to earn significant unbudgeted oil revenue as a result of the development. Unfortunately, they argued, such revenue would not reflect in the living standard of the citizens who are daily being ravaged by hardship and hunger.
The Nigerian Bonny Light crude traded above the $100 per barrel mark for the first time since May this year amid concerns that the Middle East crisis could disrupt global oil supplies. The region accounts for nearly one-third of the world’s crude exports, and any prolonged disruption is expected to keep prices elevated.
While the surge in oil prices offers a fiscal windfall for Nigeria, economists say the gains may be outweighed by the rising cost of living, as Nigerians are likely to bear the burden of higher fuel prices under the deregulated downstream petroleum market.
The 2026 Federal Government budget was benchmarked at a crude oil price of $64.85 per barrel, daily production of 1.84 million barrels and an exchange rate of N1,400 to the 1 US Dollar.
At $100 per barrel price of crude, Nigeria is earning about $35 more per barrel than projected, potentially generating billions of naira in additional revenue if production and exports remain stable.
However, the revenue gains may be moderated by lower-than-budgeted output. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), current oil production stands at about 1.7 million barrels per day, including condensate.
For consumers, the immediate concern is the likely increase in petrol prices. As international crude prices rise, import costs also increase, pushing up landing costs for imported fuel and forcing marketers to review pump prices upward.
Any increase in petrol prices is expected to trigger fresh hikes in transport fares, with knock-on effects on the prices of food, manufactured goods and other essential commodities across the country.
The Brent crude, one of the two key global benchmarks, closed higher by seven per cent, at $100.69 per barrel. Earlier in the trading day, it rose as high as $102 per barrel. That is its highest level in eight weeks, since the end of May.
U.S. crude oil also jumped for a second straight day, closing higher by 6.2 per cent, at $92.19 per barrel — its highest close since June 4.
The prices surged after Tehran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea following their announcement of a naval blockade on the kingdom.
It appeared to be the first time since the Iran war began that ship attacks had spread beyond the vicinity of the Strait of Hormuz, opening up a new front in the volatile conflict.
