Nigerian consumers may get some relief from high petrol and other fuel costs after international crude prices fell, following signals from United States President Donald Trump that Washington could ease sanctions on tankers carrying oil and refined products from Venezuela, Russia and Iran. The potential policy shift is aimed at reducing an increasingly severe shortage of available oil tankers.
Crude prices retreat as tanker-sanctions talks emerge
Brent crude declined to $104 a barrel on Thursday, while West Texas Intermediate (WTI) fell to $94 a barrel. Both benchmarks had traded as high as $106 and $96, respectively, a day earlier.
- Brent’s day-on-day decline was 1.48 per cent.
- WTI dropped 2.08 per cent from the previous day.
- US officials said discussions were under way on removing restrictions affecting vessels in the shadow fleet operating around the Gulf region.
- The talks followed Trump’s temporary suspension of sanctions on Russian diesel fuel the previous day.
The Trump administration has been under pressure ahead of midterm elections as energy prices surge amid the conflicts involving Iran and the Russia-Ukraine war. Rising fuel costs have placed substantial strain on households and businesses in a number of economies.
Higher energy costs weigh on consumers
In the United States, petrol reached $1.23 per litre, equivalent to $4.33 a gallon. The sharp increase in energy costs has pushed many countries closer to economic stress, with transport, production and household expenses all affected.
Fuel prices in Nigeria have also remained unstable. In Abuja and surrounding areas, a litre of petrol has been selling for between N1,370 and N1,420.
Nigeria subsidy debate returns to the fore
The continuing price swings have renewed arguments over whether Nigeria should restore fuel subsidies. Atiku Abubakar, the African Democratic Congress (ADC) presidential candidate and an opposition leader, has promoted a return to subsidies ahead of the January 16, 2027 presidential election.
- President Bola Ahmed Tinubu, who is pursuing re-election, has continued to oppose the reinstatement of fuel subsidies.
- Finance Minister Taiwo Oyedele recently unveiled a proposed fuel-discount initiative through the Nigerian National Petroleum Company Limited (NNPCL).
- Petroleum marketers and retail operators have urged the government to expand the proposed discount beyond NNPCL outlets to filling stations nationwide.
