Global crude oil prices surged past $100 per barrel on Monday, driving domestic fuel costs in Nigeria above N1,000 per liter for the first time, as escalating tensions in the Middle East disrupted supply expectations.
Brent crude rose 13 percent to $103.30 per barrel, while West Texas Intermediate climbed 15 percent to $107.30, according to oilprice.com. The rally follows heightened geopolitical risks after recent military exchanges between Iran and the United States and Israel, which have raised concerns about wider instability in a key production region. The conflict has already led to the shutdown of major refineries and crude operations in the Gulf, tightening global supply chains.
The surge has immediately impacted downstream markets. In Nigeria, premium motor spirit (PMS), commonly known as petrol, exceeded N1,000 per liter, a significant increase from approximately N870 per liter prior to the latest escalation in Middle East hostilities. The price jump underscores the country’s continued vulnerability to international oil market volatility despite its own production.
In response to the rapid price increase, finance ministers from the Group of Seven (G7) nations are scheduled to discuss a coordinated release from strategic petroleum reserves. The potential intervention aims to cool the market and mitigate economic fallout from the supply shock. Any decision by the G7 could influence price trajectories in the coming weeks.
The situation illustrates the direct transmission of geopolitical risk into global energy costs and consumer prices. For oil-importing nations like Nigeria, the effect is acutely felt at the pump, exacerbating inflationary pressures. Market attention now focuses on the outcome of the G7 meetings and any de-escalation efforts in the Middle East, which remain uncertain. The persistence of supply concerns suggests elevated crude prices may continue to pressure domestic fuel costs worldwide in the near term.
