By Ejiofor Toochi
Edited by Bababunmi Agbebi
Nigerians are looking toward possible relief at the pumps as global markets react to the newly announced peace agreement between the United States and Iran.
The deal, which formally ends a four-month conflict, is expected to reopen the Strait of Hormuz — a major shipping route for global crude oil exports. The development has already triggered a sustained decline in global oil prices, raising expectations that petrol prices in Nigeria could also reduce in the coming weeks.
Crude oil prices, which climbed above $120 per barrel at the peak of the conflict in April, dropped to about $87 per barrel as of Sunday.
The conflict, which began in February, escalated into a global crisis after Iran closed the Strait of Hormuz, disrupting nearly one-fifth of the world’s oil supply. The move sent global crude prices soaring past $115 per barrel and triggered fuel inflation worldwide.
Although Nigeria is one of Africa’s largest oil producers, the country still relies heavily on imported refined petroleum products. As global oil prices increased during the conflict, the cost of importing petrol into Nigeria also rose, pushing pump prices to as high as N1,300 per litre.
With the ceasefire and easing tensions between the US and Iran, industry operators are anticipating a downward adjustment in domestic petrol prices if the decline in global crude prices continues.
While no official reduction has been announced, some marketers believe petrol prices could fall to around N900 per litre if international oil prices remain stable and supply routes fully reopen.
However, some experts caution that petrol prices in Nigeria will still depend on several factors, including exchange rate fluctuations, importation costs and the final implementation of the peace agreement.
For many Nigerians already struggling with rising transportation and living costs, any reduction in petrol prices would provide much-needed relief.
