Oil surges above $119/barrel, pushes petrol gantry price to N1,200

By Adewale Sanyaolu

Oil prices spiked sharply on Thursday, with Brent crude surging above $119 per barrel, as escalating tensions in the Middle East rattled global energy markets and triggered fresh concerns over supply disruptions.

The surge follows Iranian attacks on key energy infrastructure across the region in retaliation for Israel’s strike on the South Pars gas field, marking a dangerous escalation in the conflict and reinforcing fears of a broader regional war that could choke critical oil and gas flows.

The global price rally is already feeding into Nigeria’s downstream market, where the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, climbed to N1,200 per litre from N1,175, raising the likelihood of another round of pump price increases.

Data from petroleumprice.ng showed that depots such as Parker and Zamson adjusted prices upward to N1,200 per litre in response to the surging crude market, reflecting the growing pass-through effect of international oil volatility on domestic fuel costs in a deregulated environment.

Across Lagos, retail prices have begun to edge higher, with MRS stations, partners of Dangote Petroleum Refinery, selling at about N1,232 per litre, while Mobil outlets dispensed at N1,235 per litre. AP and NNPC stations were not far behind at N1,225 per litre, highlighting a broad-based upward movement across both major and independent marketers.

The latest spike highlights Nigeria’s continued vulnerability to global oil shocks despite recent efforts to boost local refining capacity.

Analysts note that while the Dangote refinery has improved supply stability, the domestic market remains heavily influenced by international crude benchmarks, exchange rate pressures, and logistics costs, factors that have combined to sustain elevated fuel prices.

Motorists expressed growing frustration over the rising cost of petrol, warning that the increase is already cascading into higher transportation fares and commodity prices.

Many called on the federal government to introduce targeted interventions to cushion the impact, as household incomes come under increasing strain amid persistent inflationary pressures.

In the international market, Brent futures climbed as high as $119.13 per barrel during the session, nearing peaks last seen over three years ago, before easing slightly. United States West Texas Intermediate (WTI) also traded higher, although it continues to lag Brent at a significant discount, the widest gap in over a decade, reflecting regional supply dynamics and export constraints.

Further tightening the market, Middle East benchmarks such as Dubai and Oman crude recorded record premiums, signaling intense competition for available barrels as traders scramble to secure supply amid rising geopolitical risk.

The unfolding crisis has also intersected with broader macroeconomic concerns.

The US Federal Reserve held interest rates steady but flagged the risk of higher inflation driven partly by rising energy costs. In parallel, Washington is reportedly exploring options to ease sanctions on Iranian oil, potentially releasing up to 140 million barrels stranded in floating storage in a bid to stabilise global supply and temper price increases.

Meanwhile, the conflict continues to disrupt critical energy infrastructure. Missile and drone attacks have hit major facilities in Qatar, including the Ras Laffan industrial hub and Shell’s Pearl gas-to-liquids plant, forcing shutdowns and raising concerns over liquefied natural gas (LNG) supply. Saudi Arabia and Kuwait also reported attacks on key installations, although operations in some locations have resumed after initial disruptions.

With tanker traffic already under pressure and fears mounting over the security of key transit routes such as the Strait of Hormuz, energy analysts warn that oil markets could remain highly volatile in the near term.

For Nigeria, the implications are immediate and severe, as rising crude prices continue to translate into higher fuel costs, intensifying economic hardship and complicating efforts to stabilise inflation.