Fresh Petrol Price Hike Looms as Crude Hits $107 Per Barrel

A fresh petrol price increase may be imminent in Nigeria as Brent crude jumped to $107 per barrel on Thursday from about $100 the previous day.

The surge has renewed pressure on domestic fuel prices, which have already risen from about N830 per litre before the Middle East crisis to N1,310 or more in some parts of the country.

Before the crisis erupted on February 28, international crude traded below $69 per barrel. The subsequent disruption to oil supplies has since driven prices higher.

The development has prompted the Dangote Petroleum Refinery and fuel importers to review their pricing as global crude costs climb.

Oilprice.com reported that Brent gained more than five per cent in early trading on Thursday. The benchmark had crossed the $100 mark earlier in the week.

West Texas Intermediate also rose above $100 per barrel as the continuing United States-Iran confrontation heightened concerns over global supply.

The latest rally largely reflects a sharp drop in crude shipments through the Strait of Hormuz.

Oilprice.com said oil flows through the strategic waterway had fallen below two million barrels daily. The volume had earlier recovered to between six million and nine million barrels per day.

Shipping trackers also recorded a sharp decline in tanker movements through the strait. No very large crude carrier had reportedly exited the waterway since early September.

The situation has worsened following attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters.

Iran has claimed attacks on several ships, while the United States confirmed the destruction of some Iranian oil tankers.

Neither side has indicated an immediate ceasefire, raising fears that the confrontation could persist for weeks or longer.

Analysts said the uncertainty has forced traders to reassess the risks to global crude supplies. Physical crude prices have already moved above $100 in recent sessions.

The futures market has also followed the upward trend as inventories tighten and alternative export routes face greater security risks.

For months, increased tanker traffic through the Strait of Hormuz had eased concerns about supply disruptions. That trend has now reversed.

With crude flows falling and no clear diplomatic settlement in sight, traders are increasingly factoring prolonged disruption into oil prices.

The development could have fresh implications for Nigeria, where domestic petrol prices remain sensitive to international crude and supply costs.

A sustained rise in global oil prices could therefore push refiners and importers to raise their selling prices further, potentially triggering another round of petrol price increases.