A sharp rise in global crude oil prices has pushed up the cost of refined petroleum products in international markets, and petrol prices in Nigeria may come under renewed pressure.
Rising geopolitical tensions and major supply disruptions have returned the global oil market to a period of increased volatility, which is related to the rise in prices.
The price of crude oil has climbed to its highest level since 2022, prompting further rises in the cost of petrol, diesel and aviation fuel across the globe.
“The rally is largely driven by developing tensions in the Middle East and tightening supply conditions in key oil-producing regions,” said industry analysts.
These developments are already feeding into higher prices for refined petroleum products in global markets.
The price of crude oil, which is the most important component of petrol production, has been rising steadily in recent weeks after the effective closure of the Strait of Hormuz, a key shipping lane through which almost one-fifth of the world’s crude oil supplies pass.
The disruption has stranded several oil tankers, further tightening supply and adding to pressure on prices.
This has driven the average global price of petrol to around $1.5 per litre, reflecting continued pressure from high crude oil prices and persistent geopolitical risks.
Nigeria operates a deregulated fuel pricing regime, however, it is still one of the cheapest petrol markets globally where PMS is sold at about $0.9 per litre.
But energy analysts warn that sustained volatility in global crude oil prices could eventually push domestic pump prices higher.
They note that Nigeria’s current pricing advantage has been helped by better local supply conditions, especially increased output from the Dangote Petroleum Refinery, which has helped to stabilise fuel supply and mitigate the immediate impact of rising international oil prices.
Fuel prices remain especially high in advanced economies.
Petrol costs around $4.2 per litre in Hong Kong, one of the world’s most expensive markets.
Other high-priced markets are the Netherlands ($2.7/litre), Switzerland ($2.4), France ($2.3) and the United Kingdom ($2.1/litre).
Several countries across Africa are also grappling with high fuel prices due to heavy import dependence and currency pressures.
Malawi currently has one of the world’s highest petrol prices at about $3.8 per litre, compared to Morocco where it sells at about $1.7 per litre.
In Seychelles, Kenya and Cameroon prices are close to $1.5 per litre, while Ghana, Lesotho and South Africa average around $1.4 per litre.
