The Trump administration says refinery disruptions, rather than reduced shipments through the Strait of Hormuz, are now the main force pushing up gasoline prices in the United States.
Refineries replace Hormuz as the focus
- In a Monday post on the White House’s official X account, the administration said unprecedented quantities of crude were moving through the Strait of Hormuz on an almost daily basis. It argued that this had reduced the importance of the waterway as the immediate explanation for higher US gasoline costs.
- The White House instead highlighted refinery problems. It pointed to Russian facilities being hit in Ukrainian attacks and to refineries being shut in Democratic-led, or “blue,” US states.
- The administration’s position comes as policymakers assess how refinery outages could restrict fuel availability and raise prices for American motorists. Its statement indicated that access to crude through Hormuz is no longer viewed as the leading source of pressure on gasoline prices.
Global and Nigerian effects
The Strait of Hormuz remains a crucial international route for crude oil and refined petroleum shipments. The conflict involving Iran, the United States and Israel in the Gulf has nevertheless caused major disruption around the passage, with consequences for energy supplies and fuel markets worldwide, including Nigeria.
At the time of filing, West Texas Intermediate crude was trading at $89 a barrel, while Brent stood at $100. Petrol prices in Nigeria ranged from N1,370 to N1,410 per litre in Abuja.
