M-East war: Crude may hit $130 — experts; petrol stabilises at N1,040 in Lagos, N1,080 in Abuja

2026-03-08 - 05:17

By Udeme Akpan & Mariam Eko Nigeria’s downstreampetroleum sector may face renewed instability as industry experts warn that crude oil prices could rise to $130 per barrel if the ongoing tension between the United States and Iran escalates further, tightening global oil supply. The conflict has already pushed crude prices above $100 per barrel from about $85 per barrel, triggering a sharp increase in the price of Premium Motor Spirit (PMS), popularly known as petrol, to over N1,000 per litre across parts of Nigeria. However, in separate interviews with Vanguard, industry experts said the US–Iran conflict may not end soon, adding that as long as the war persists, crude oil prices would continue to rise in the global market. The Chief Executive Officer of petroleum.ng, Olajide Jeremiah, said: “We do not see the war ending soon. The two major parties are still talking tough. They are also major players in the global oil business. Also, the escalation of the war to other areas, resulting in the destruction of major oil and gas installations, means that operations have been affected.” Similarly, the National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Colman Obasi, said: “At OGSPAN, we do not think the war will end soon. There is currently no sign to that effect. The prolonged conflict will continue to drive speculation and push oil prices higher.” On its part, JPMorgan Chase projected that Brent crude could hit $120 per barrel if a full-scale Middle East conflict results in sustained disruption of oil flows through the Strait of Hormuz. Meanwhile, the price of petrol, which initially rose to as high as N1,100 per litre on Friday, has stabilised at N1,040 per litre in Lagos and N1,080 per litre in Abuja. The development comes a day after the Dangote Refinery increased its ex-gantry price of petrol to N995 per litre. Checks by Vanguard indicated that at Nigerian National Petroleum Company Limited (NNPC) retail stations, petrol was sold at N1,040 per litre, representing an increase of N47 from the previous price of N993 per litre. It was also observed that at Emadeb Energy and PM Petroleum, the product sold for N1,040 per litre. In Abuja, petrol sold for N1,050 per litre at Gegu Oil Nigeria, while Empire Energy sold the product for N1,080 per litre.