Nigeria Petrol Prices Ease After Oil Surge

Nigeria's petrol prices have surged in recent weeks due to geopolitical tensions in the Middle East, only to begin easing as global crude oil benchmarks declined, exposing the country's vulnerability to international market shocks.

The price of premium motor spirit, commonly known as petrol, climbed above 1,000 naira per litre in many locations last week, reaching as high as 1,300 to 1,400 naira in some areas. This rapid increase followed a spike in global oil prices triggered by conflicts involving the United States, Iran, and Israel, which raised fears of disruptions to oil supplies through the Strait of Hormuz. However, prices started to fall after U.S. President Donald Trump indicated the conflict could end soon, alleviating concerns over prolonged supply interruptions. Brent crude, the global benchmark, dropped about 8.45 percent to around 92 dollars per barrel from 110 dollars.

In response to the initial surge, the Nigerian National Petroleum Company Limited adjusted its retail prices downward on Wednesday. Petrol now sells for 1,130 naira per litre at NNPC outlets in Lagos, down 100 naira from 1,230 naira, and 1,165 naira per litre in Abuja, a reduction of 95 naira from...