Hope of Lower Petrol Price in Nigeria Now in Doubt Over US, Iran’s Decision
by Dave Ibemere, https://www.facebook.com/legitngnews · Legit.ng News · Join- Hopes of petrol prices dropping to around N900 per litre in Nigeria have faded after Iran reclosed the Strait of Hormuz
- Fuel marketers say the renewed closure disrupts earlier projections, and current high pump prices may persist
- US President Donald Trump accused Iran is violating the ceasefire has raised tensions
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerians hoping for lower petrol prices will have to wait longer following Iran’s decision to reclose the Strait of Hormuz amid renewed tensions with the United States.
The critical oil shipping lane, which accounts for about 20% of globally traded crude, was briefly reopened on Friday, April 17, after a ceasefire deal between Iran and the United States triggered a sharp fall in oil prices.
Immediately, the ceasefire was announced, Brent crude had dropped below $90 per barrel, raising hope of lower petrol prices.
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Crude oil price dashes hope of Nigerians
However, less than 24 hours later, Iran reversed course and shut the strait again, citing continued US blockade of its ports.
The Iranian military said the waterway had “returned to its previous state,” with reports of attacks on vessels attempting to pass through.
The latest decision by Iran drove crude oil prices to $95 on Monday, April 20, dashing earlier expectations among Nigerian fuel marketers that pump prices could fall from around N1,250 per litre to about N900.
Spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Joseph Obele, had earlier projected that Nigerians would soon see relief at the pumps following the reopening, Punch reports.
“With the reopening of the Strait of Hormuz, Nigerians should expect a very significant reduction in petrol prices. Petrol will fall below N1,000 by next week, probably to N900 per litre."
But speaking on Sunday, Obele said the renewed closure has effectively halted those projections.
He said:
“The status quo will remain for now until there is a lasting ceasefire between Iran and the United States."
U.S. President Donald Trump accused Iran of violating the ceasefire by attacking ships in the strait and warned of possible retaliation if tensions persist.
“Iran decided to fire bullets yesterday in the Strait of Hormuz, a total violation of our ceasefire agreement.”
He added that the US could target Iranian energy infrastructure if no agreement is reached.
Despite the renewed disruption, global oil prices have only risen moderately.
Olatide Jeremiah, the CEO of PetroluemPrice.ng, had earlier told Legit.ng about the impact of rising crude oil prices.
He said:
"The only way to prevent fuel prices from being at the mercy of oil prices is to give full priority to Nigerian crude to our local refineries. Otherwise, oil shocks will continue to influence our local prices and markets.”
Petrol prices rise at depots
Legit.ng earlier reported that the prices of petroleum products such as Premium Motor Spirit (PMS), also known as petrol; Automotive Gas Oil (AGO), commonly called diesel; and aviation fuel have remained under pressure, with importation higher than domestic refinery prices.
In its latest report titled Energy Bulletin, released on Tuesday, April 14, the Major Energies Marketers Association of Nigeria (MEMAN) stated that at the Dangote Refinery, petrol is priced at about N1,153 per litre (coastal) and around N1,200 per litre at the gantry.
Diesel is estimated at N1,750 per litre, while aviation fuel is priced at approximately N1,916.22 per litre.