LAGOS, JUNE 23, 2025 —
📰 BoomNews 24 | Energy & Economy
Iran–Israel Crisis: Petrol in Nigeria Could Soar to ₦1,000/Litre
LAGOS, JUNE 23, 2025 —
With escalating tension between Iran and Israel, fuel prices are under renewed pressure. Recent U.S. and Israeli airstrikes on Iran’s nuclear sites, plus Iran’s parliament approving a potential closure of the Strait of Hormuz—a chokepoint accounting for ~20% of global oil flow—have sent oil prices surging above $80 per barrel .
Local petroleum marketers are warning that Nigeria could soon see pump prices of Premium Motor Spirit (petrol) hit ₦1,000 per litre—from current levels near ₦880–₦925—if Brent crude breaches or sustains $80/bbl.
Economic analysts note Nigeria’s fuel pricing remains tied to global benchmarks post-subsidy removal, meaning surging crude prices directly impact domestic pump costs. Though the Dangote Refinery helps buffer volatility, it cannot fully shield against sharp global price shocks.
- Crude Surge: Brent crude rose past $77–80/bbl on June 22 amid geopolitical risk, with forecasts warning of potential $100+ spikes if Hormuz is closed.
- Domestic Impact: MRS Oil raised pump price to ₦925/L in Lagos and ₦955 in Southeast, citing global cost increases.
- Potential ₦1,000 Benchmark: Market watchers say petrol could reach ₦1,000/L unless diplomatic tensions ease or crude prices retreat.
Summary & Outlook
| Theme | Implication |
|---|---|
| Global Risk Premium | Iran’s threat to close Hormuz is driving a premium on crude, intensifying volatility. |
| Domestic Pricing Pressure | Pump prices are sensitive to crude; any spike near $100/bbl could push petrol past ₦1,000/L. |
| Buffer Capacity | Dangote refinery softens but doesn’t eliminate exposure to global price swings. |
| Consumer Concerns | Higher petrol prices risk stoking inflation, transport cost spikes, and broader economic ripple effects. |
BoomNews 24 will keep tracking crude trends, geopolitical developments, and Nigerian pump prices as events unfold.
🖋 By BoomNews 24 Energy Desk
