Fuel price hike: Global oil prices increase by nearly 4%

Global oil prices surged by nearly 4 percent on Wednesday amid continued airstrikes in the Middle East.

Brent crude increased by 3.75 percent to $94.42 per barrel, while West Texas Intermediate, WTI rose by 3.55 percent to $87.33 per barrel.

The increase was driven by heightened threats to shipping at two key chokepoints in the region: the Strait of Hormuz and the Bab el-Mandeb Strait.

Recall that reports emerged that the Iran-aligned Houthis are preparing to attempt the closure of the Bab el-Mandeb Strait, a move that would disrupt supplies from the Saudi port of Yanbu on the Red Sea. Global energy price shocks typically impact domestic energy prices.

In Nigeria, fuel prices have continued to rise amid uncertainty surrounding the Dangote Refinery’s resumption of petrol sales in dollars.

The pump price of fuel in Abuja has risen from as low as N1,155 per litre to N1,350 per litre as of the time of filing this report.

Recall that the Nigerian National Petroleum Company Limited, NNPCL increased its pump price to N1,270 per litre from N1,155 per litre. 

Before NNPCL’s price hike, depot owners and marketers had raised their ex-depot and retail prices to between N1,280 and N1,350 per litre in Lagos and Abuja.