Hopes for a significant petrol price drop in Nigeria have faded following renewed tensions in the Strait of Hormuz, a critical global oil route. The brief optimism that fuel prices could ease has been overshadowed by Iran’s decision to reclose the waterway, raising fresh concerns about supply disruptions and price stability in the country.
The strait had only just reopened on Friday after a ceasefire agreement between Iran and the United States, sparking expectations of lower global oil prices. However, within 24 hours, Iran reversed course, citing continued U.S. blockades of its ports. Reports of gunfire targeting vessels attempting to pass through the route further heightened uncertainty around the region’s security.
The Strait of Hormuz is responsible for roughly 20 percent of global oil shipments, making it one of the most important energy corridors in the world. Recent developments have already impacted oil markets, with prices rising again after initial declines triggered by the ceasefire announcement . Analysts say the volatility reflects how sensitive global oil supply is to geopolitical tensions in the region.
Earlier, fuel marketers in Nigeria had projected that petrol prices could drop from about ₦1,250 per litre to as low as ₦900, following the temporary reopening of the strait. The spokesperson of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, noted that petrol previously sold around ₦800 before the crisis escalated, expressing confidence that prices would fall if stability returned.
However, with the latest closure, those projections have been put on hold. Obele explained that the current situation would likely persist until a lasting ceasefire is achieved between Iran and the United States. Meanwhile, U.S. President Donald Trump has accused Iran of violating the ceasefire and warned of possible escalation, adding another layer of uncertainty to global oil supply and, ultimately, petrol prices in Nigeria.
source: punch