By Chiagoziem Abosi
Edited by Bababunmi Agbebi
The price of fuel in Nigeria has continued its steady climb, and for many residents of Ikeja, the impact is no longer something they read in the news. It is something they feel every single day.
From higher transport fares to increased food prices, the ripple effects are everywhere.
Since the removal of fuel subsidy in 2023, petrol prices in Nigeria have been largely determined by market forces. This means prices now fluctuate based on:
- Global crude oil prices
- The exchange rate of the naira
- The cost of importing fuel
But recently, there is a new and very powerful factor driving prices up globally.
The ongoing conflict involving Iran, Israel and the United States has significantly disrupted global oil supply.
According to a report, the war has affected the Strait of Hormuz, one of the most important oil shipping routes in the world. This narrow channel handles about 20 percent of global oil supply, and any disruption there immediately affects global prices.
With attacks on infrastructure and threats to shipping routes, oil supply has tightened, pushing prices higher. In fact, global crude oil prices have surged sharply since the conflict began, with analysts warning that countries like Nigeria will feel the impact through higher fuel costs.
And here is where it hits home.
Nigeria still depends heavily on imported fuel, and those imports are priced in dollars. So, when global oil prices rise and the naira remains under pressure, petrol becomes even more expensive locally.
Is There Any Relief in Sight?
There have been efforts to stabilise supply, including increased activity from local refineries and policy adjustments. However, experts suggest that as long as Nigeria still relies significantly on imported fuel and foreign exchange, prices may continue to fluctuate.
For now, the reality is clear.
Fuel prices are not just rising. They are reshaping how people live, move, and do business.
