Nigeria’s oil sector has seen a sharp shift as the Nigerian National Petroleum Company Limited (NNPC) increased the official selling prices of all 37 Nigerian crude grades for May-loading cargoes. The adjustment comes amid rising global oil tensions linked to the ongoing US-Iran conflict, which has unsettled energy markets worldwide.
According to Oilprice.com, the price of Nigeria’s flagship crude, Bonny Light, was raised by $6.13 per barrel compared to April, while Forcados rose by $7.01 per barrel. The development highlights how geopolitical instability is reshaping global oil pricing, with Nigeria positioned as one of the beneficiaries of the recent surge.
The rise in crude prices has also been reflected in international benchmarks. Bonny Light reportedly hit $124.86 per barrel, trading significantly above Brent crude, which climbed past $110 per barrel. Market uncertainty deepened as fears grew that the US-Iran standoff could escalate further, potentially disrupting oil flows through critical routes like the Strait of Hormuz.
Analysts say the situation presents a mixed outcome for Nigeria. While higher crude prices could boost national revenue, they may also contribute to increased fuel costs locally, especially as refiners like the Dangote Petroleum Refinery may face higher import costs. This could eventually translate into higher pump prices and added pressure on consumers already battling inflation.
Energy experts and economists have warned that the benefits of rising oil revenue may be overshadowed by economic hardship for citizens. They have called for targeted government interventions, such as cash transfers to vulnerable Nigerians, to help cushion the impact of rising transport and living costs driven by global oil market volatility.