New Petrol Prices Expected After Trump’s Decision Push Up Crude Oil Cost
- Global oil prices have surged after Donald Trump announced a naval blockade targeting Iran
- The decision has raised fears of supply disruptions in energy markets across the country
- Rising crude prices are expected to push up Nigeria’s depot and retail petrol prices
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Global oil prices surged sharply on Monday, April 13, after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption across international energy markets.
Brent crude, the global benchmark, rose more than 8% to trade above $103 per barrel on Monday, crossing the psychologically significant $100 threshold for the first time since last week, when prices briefly surged past $111 per barrel.
Source: Getty Images
US West Texas Intermediate (WTI) also climbed to $104.90 per barrel as of 05:25 AM (WAT), reflecting renewed risk sentiment among traders.
Why is the crude oil price on the rise?
The rally followed the collapse of ceasefire talks between US and Iranian officials over the weekend.
Trump said the US Navy would block vessels from entering or exiting the Strait of Hormuz, a vital shipping route responsible for about one-fifth of global oil and gas supply.
However, US Central Command later clarified that the restrictions would apply only to vessels travelling to and from Iran, stopping short of a full maritime blockade.
The directive is scheduled to take effect at 10:00 AM Eastern Time (14:00 GMT) on Monday.
Petrol prices in Nigeria
For Nigeria, rising global crude prices are expected to translate into higher depot and retail petrol prices.
Marketers are likely to adjust rates upward in response to rising crude oil prices, reversing the brief price relief recorded last week.
Source: Getty Images
Last week, in Lagos, Aiteo, Nipco, and A.A. Rano ex-depots price for petrol was between N1,208 and N1,210 per litre.
In Port Harcourt, Sigmund and Bulk Strategic are selling within the N1,223 to N1,225 range.
Warri depots, including Matrix, Danmarna, and A.Y.M. Shafa, are quoting prices between N1,234 and N1,235 per litre, while in Calabar, Wabeco, Sobaz, and Soroman are selling at around N1,223 per litre.
While Dangote refinery sells at N1,200.
Also, the national average depot price fell below N1,230 per litre, down from the previous average of N1,250 per litre, but the upward trend suggests further increases are likely if global oil prices continue to climb.
Olatide Jeremiah, CEO of PetroleumPrice.ng, told Legit.ng that crude oil impacts depot and retail prices.
He noted:
"Crude oil accounts for 80% of the production components of refined products anywhere in the world and is a key determinant on petrol pricing by refineries and depot owners."
NMPDRA speaks on petrol availability
Earlier, Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured the public of adequate availability of petroleum products nationwide.
NMDPRA stated that domestic supplies of diesel (AGO), petrol (PMS), and liquefied petroleum gas (LPG) are sufficient to meet national demand.
The authority stated that products are being sourced from both local refineries and imports, ensuring timely replenishment at storage depots and retail stations nationwide.
Source: Legit.ng
