Global oil prices experienced an immediate spike after Israel announced an attack on Iran as tension escalated in the Middle East, stirring fear of a Premium Motor Spirit price surge in the Nigerian local market.
This is the case as prices of Brent, NYMEX Light Sweet, and West Texas Intermediate (WTI) crude futures were up between 9 percent and 10 percent to around $75.15, $73.20, and $74 per barrel, respectively, shortly after Israel struck Iran, hitting their highest levels in February 2025.
The development had raised concerns among traders that the conflict between Iran and Israel could disrupt supplies coming from the energy-rich region.
On the gain side, this is the first time global oil prices have surpassed the Nigerian government’s 2025 budget benchmark of $75 per barrel.
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However, the cost of crude oil affects everything, including the local cost of Premium Motor Spirit, which stood between N870 and N910 per litre in Lagos and Abuja. By implication, as global oil prices soar, the cost of domestic PMS may go up. Africa’s largest refinery plant, the Dangote Refinery, relies heavily on crude imports from the US to ramp up its petroleum products production capacity.
