Brent hits $117 on Middle East conflict, 13% monthly gain—Nigeria energy inflation doubles
Brent crude surges to $117.30 per barrel, up 13% this month alone as escalating US-Israel-Iran conflict disrupts Middle East oil flows. WTI crude follows at $103.80. This marks the fourth straight monthly gain after September's 25% spike to $114.16. Houthi rebels claim attacks on Saudi Arabia's Ras Tanura refinery (550,000 bpd capacity), Rabigh refinery, Abqaiq facility, and key airports—though Riyadh hasn't confirmed. The Strait of Hormuz, critical for global crude shipments, faces continued kinetic action with no diplomatic path visible.
For Nigeria, energy inflation more than doubled to 10.85% year-on-year in September from 4.69% in August, per NBS. Niger has already banned petrol and diesel exports to secure domestic supply. The UNDP projects global fossil-fuel subsidies could top $1 trillion in 2026 as governments absorb price shocks. Higher crude feeds directly into transport, power generation, and manufacturing costs—pressuring household budgets and business margins already strained by naira depreciation.
Oil analysts warn prices could climb further if Hormuz shipping lanes face sustained disruption. Nigeria's import-dependent fuel supply chain means every $10/barrel increase translates to higher pump prices unless subsidy returns. The NNPC's current pricing model and Dangote Refinery's ramp-up timeline become critical variables.
With fuel costs rising globally and domestic inflation accelerating, will you adjust your business pricing now or wait for the next pump price review?