How US-Israel war wit Iran dey affect fuel prices for Nigeria

Some places for Lagos and oda parts of Nigeria don begin dey experience long queues for petrol station and also increase in fuel prices.

Car owners, drivers and passengers don begin dey panic ova wetin dem describe as sudden increase in fuel prices and scarcity wey also don dey get effect ontop transport fare.

Dangote Petroleum Refinery wey dey for Nigeria tok say na di conflict wey dey happun for di Middle East lead to di shutdown of some refineries and na why petrol product come dey scarce.

E say di conflict don lead to cut in refinery production across di world.

"Dis dey lead to global scarcity of petroleum products. Di conflict don drive global crude and freight prices sharply higher, wit benchmark Brent prices rising by about 26% within short period to above $84.0 per barrel," Dangote tok.

Di BBC News Pidgin witness some petrol queues for Lagos on Friday evening, for places like Berger, Ikeja, and congested areas for Mainland as drivers lament increase in price.

One commercial driver say e buy one litre of fuel for ova 1,000 wey no be so bifor and even di struggle to take get di fuel affect im daily work.

'Nigerian crude oil dey more expensive'- Dangote

Dangote Refinery say dem go try to cushion di effect of di fuel price for di international oil market.

E say di Middle East conflict dey really affect supply but dem go make sure say Nigeria no too dey affected as dem go prioritise 'suuply to di domestic market.'

"Di Dangote Refinery go ensure sat Nigeria dey insulated from dis supply shocks by prioritising supply to di domestic market. Dis na one of di many benefits of domestic refining."

Although, Dangote lament say di conflict between US-Israel and Iran don make crude oil prices go up within short period.

Dem say dem go bear 20% of di cost, for now, so dem go fit cushion di domestic market, even though dem dey buy crude oil for international market prices, locally or from foreign suppliers.

"E dey worth noting say Nigerian crude oil dey more expensive dan di Brent benchmark price by $3 to $6 per barrel. After adding freight of $3.50 per barrel, crude oil go land for our tanks between $88 and $91 per barrel."

Dangote say bifor, dia depot price na 774 naira per litre, but now di cost don increase.

On di reason why fuel price dey go up, Dangote say na five cargoes dem dey get from di NNPC wey dey below di 13 cargoes wey dem require to be able to sell for Nigeria.

And dat don make dem begin dey source for foreign exchange to pay for cargoes wey dem go buy from both local and international traders.

"Di high crude cost dey compounded by di fact say Nigeria upstream producers fail to supply crude oil to di refinery as required under di PIA, and e force us to source substantial portion through international traders wey dey charge an additional premium."

Di refinery say if dem sell below cost, e no go allow dem buy more crude, kontinue production and supply to Nigerians.

'We get petrol stock wey fit last for ova five weeks'- Ghana

Meanwhile, for Ghana, di kontri National Petroleum Authority (NPA) say make di public no panic as Ghana get enough fuel stock to last "several weeks" despite di Middle East crisis and tension for di region.

Director for economic regulation for NPA, oga Abass Ibrahim Tasunti tok local channel JoyNews say Ghana wey dey import petroleum product go feel di effect of di oil market kasala.

But im add say di petroleum authority put in place plans wey go ensure "consistent supply and prevent immediate shortage."

"We get diesel stock wey fit last for ova five weeks; for petrol, we get wetin go last for more than six weeks."

Fuel prices for Ghana don dey stable for many months now. But wit di Middle East crisis, prices fit rise again.

Di CEO of di petroleum authority Edudzi Tameklo say govment go take measures wit managers of di economy to cushion di effecf of rising prices on consumers.

"We dey engage wit di finance ministry, di bank of Ghana and oda players so say dem go give petroleum imports some good intervention wey go absorb di impact," Edudzi tok TV3 on 7 March 2025.

E no dey clear when di prices go increase for di pumps but consumers say dem want make di govment reduce di impact of di global price hike on di ordinary Ghanaian.

"For sometime now fuel prices don reduce wey we fit dey fill our tanks, but wit dis Middle East war, tins fit change, but make di govment step in, we no wan go back to buying fuel for Ghc17 or Ghc18 per litre," oga Samuel Ntow tok BBC pidgin.

"Kontris wey dey rely on imports go suffer well well, but make dem no use dis war to scatter our pocket wit fuel increase, tins already hard," anoda pesin Charles Doe tok.

Why global oil prices dey go up?

Global oil prices don rise as Iran continue to launch strikes across di Middle East in response to ongoing attacks by di US and Israel.

Brent crude, di global benchmark for oil prices, bin jump by 10% to touch more dan $82 per barrel on Monday, bifor e relax afta dem attack at least three ships near di Strait of Hormuz ova di weekend.

Iran don warn vessels say make dem no pass through di crucial waterway for di south of di kontri, wia dem dey ship about 20% of di world oil and gas.

International shipping bin almost come to a standstill for di entrance to di Strait of Hormuz, as analysts warn say prolonged conflict fit push energy prices even higher.

Wit Brent crude trading above Nigeria 2026 budget benchmark of $64.85 per barrel, higher prices fit boost export earnings, strengthen foreign reserves and increase inflows into di Federation Account — wey go potentially raise FAAC allocations to federal, state and local govments.

However, Nigeria still dey import some of dia refined petroleum products like petrol and aviation fuel, and dia prices dey expected to rise as international crude oil price rise.

On Sunday, di Opec+ group of oil producing nations bin agree to increase dia output by 206,000 barrels a day to help cushion any price rises, but some experts doubt dis go be of much help.

Edmund King, president of di AA, warn say di kasala for di Middle East fit drive up petrol prices around di world.

"Di turmoil and bombing across di Middle East go surely be a catalyst to disrupt oil distribution globally, wey go inevitably lead to price hikes," e tok.

"Di magnitude and duration of pump price increase go depends on how long di conflict go on."

On Sunday, Iran Islamic Revolutionary Guards Corps (IRGC) say dem strike three tankers from di UK and US "by missiles and dem dey burn". Although, UK and US neva comment.

At least 150 tankers don drop dia anchor for di open Gulf waters beyond di Strait of Hormuz, although a handful of Iranian and Chinese vessels don pass through today, according to ship-tracking platform Kpler.

"Bicos of Iran threats, di strait dey effectively closed," Homayoun Falakshahi from Kpler tell BBC News.

If global crude price rise, di cost of refined products — wey include petrol and diesel — fit increase domestically, and dat go worsen inflation and di cost-of-living crisis.

Higher shipping and insurance costs go further raise di price of imported goods, and e go get ripple effects on transportation, food distribution and household expenses.