By Gloria Nosa
Rising Tensions Between Israel and Iran Push Global Oil Prices Up, Nigerian Marketers Respond with Depot Price Hike
Tensions in the Middle East have once again sent shockwaves through global oil markets, as the ongoing conflict between Israel and Iran has led to a sharp rise in crude oil prices. The international benchmark for crude jumped by 8.8%, climbing from $68 to $74 per barrel, raising fears of increased economic pressure worldwide.
In Nigeria, the effects of this global surge are already being felt. Ten of the country’s top petroleum marketers have responded by raising depot prices for petrol, citing higher importation and operational costs tied directly to the spike in crude oil. These depots serve as critical supply points for fuel retailers nationwide, meaning the change is likely to lead to higher pump prices for everyday consumers in the days ahead.
Industry players say the sudden jump in global oil prices is affecting their cost structure, including shipping, insurance, and the cost of sourcing dollars for importation. With no fuel subsidies in place and a fully deregulated downstream sector, marketers are adjusting prices in real-time to reflect international market conditions.
This latest increase in depot prices raises concerns about a fresh round of inflation in Nigeria, where rising fuel costs directly impact transportation, food distribution, and general cost of living. Commuters, small business owners, and low-income households are expected to bear the brunt of the increase unless quick interventions are made.
Analysts warn that unless tensions between Israel and Iran de-escalate soon, the global oil market could face even greater volatility, further deepening economic challenges for oil-importing nations like Nigeria. For now, the situation remains uncertain, and Nigerians are being urged to prepare for tougher days ahead as global events continue to influence local realities.
