Nigeria Records Highest Petrol Price Increase in the World Since US, Israel Iran Conflicts
- Nigeria recorded the world’s highest petrol price increase at 39.5% between Feb. 23 and Mar. 16
- Th increase is driven by global oil market disruptions linked to Middle East tensions
- The surge placed Nigeria ahead of Laos, Australia and Vietnam, and the United States
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
Nigeria has recorded the sharpest increase in petrol pump prices globally following the escalation of tensions in the Middle East involving the United States, Israel and Iran, according to data from Global Petrol Prices.
The analysis shows that Nigeria’s petrol prices rose by 39.5% between February 23 and March 16, the highest increase among all countries tracked during the period.
Source: Getty Images
Nigeria leads the world
The Cable reports that the surge places Nigeria ahead of Laos, which recorded a 32.9% increase, while Australia and Vietnam each posted 31.8%. The United States recorded a 23.6% rise.
Other countries also experienced notable increases, including Spain (18.7%), Canada (17.2%), Germany (14.9%), Egypt (14.3%) and France (12.3%).
At the lower end, South Africa recorded a marginal 1.0% increase, while Mexico saw a 0.5% rise.
The global spike in fuel prices has been linked to renewed geopolitical tensions in the Middle East, which disrupted crude oil supply chains and pushed Brent crude to a four-year high in recent weeks.
Oil markets have remained volatile amid fears of prolonged disruptions to key shipping routes and production facilities across the Gulf region.
In Nigeria, the impact has been more pronounced due to the country’s reliance on international crude benchmarks for pricing, despite the commencement of local refining operations.
Petrol price changes
Petrol now sells between N1,130 and N1,350 per litre across major cities, depending on location and supplier from the average price of N900 before the war
Nigerian National Petroleum Company Limited (NNPCL)-linked stations sell at around N1,130, N1230 in Lagos, while prices in parts of Abuja range above N1,260.
Independent marketers have pushed prices as high as N1,350 per litre.
Source: Getty Images
The Dangote Petroleum Refinery recently adjusted its ex-gantry price to N1,175 per litre, citing exposure to global crude price movements as it continues to source feedstock based on international benchmarks.
Nigeria’s crude oil production also fell to 1.31 million barrels per day in February, according to the Organisation of Petroleum Exporting Countries (OPEC), further limiting the country’s ability to cushion domestic fuel price shocks.
Petrol pricing in Nigeria
Legit.ng earlier reported that the federal government has said it will not intervene to control petrol prices despite rising tensions in the Middle East that are creating uncertainty in the global oil market.
This was disclosed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
According to him, the government would continue to allow market forces determine the price of petroleum products, stressing that intervention would only be considered as a last resort.
Source: Legit.ng
