US-Iran war bites Nigerians as petrol price hits N950

Nigerians woke up Tuesday to sharply higher fuel costs as the three-day-old war between the United States, Israel, and Iran sent crude prices spiking and forced the country’s largest refinery to pass on the pain at the pump.

Nigerian petroleum marketers and retailers announced that the retail price of Premium Motor Spirit will increase starting Tuesday and Wednesday, March 3 and 4, following Dangote Refinery’s decision to raise its gantry price to N874 per litre, a N100 jump, directly attributable to the Iran-US-Israel conflict.

With logistics costs and retailer margins stacked on top, consumers across Lagos, Abuja, and Port Harcourt are already reporting pump prices edging toward N950 per litre.

The price shock arrives barely weeks after a rare reprieve. Dangote had reduced its ex-depot rate from N799 to N774 per litre in February 2026, offering temporary relief to motorists battered by months of naira weakness and import costs. That relief has now been fully reversed and then some.

Read also: Dangote Refinery raises petrol ex-depot price to N874 on crude rally

Hormuz choke point triggers the crisis

The trigger is a conflict that erupted Saturday when the United States and Israel launched coordinated strikes on Iran, dubbed “Operation Epic Fury”, targeting what Washington described as nuclear weapons infrastructure. Iran’s response has been swift and economically consequential.

A commander in Iran’s Revolutionary Guard Corps declared the Strait of Hormuz “closed,” warning that any vessel attempting to pass through the waterway would be set ablaze. At least five tankers have been damaged, two personnel killed, and about 150 ships stranded around the strait.

The Strait of Hormuz is the world’s most critical energy chokepoint. Shipping through the corridor, which carries one-fifth of the oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near halt. Traffic is down at least 80%, according to Michelle Bockmann, a senior maritime intelligence analyst at Windward, who added that the shipping industry had already been grappling with a sharp spike in freight costs for routes out of the Middle East.

Oil prices rose above $79.40 per barrel on Monday, after hitting $73 per barrel on Friday ahead of the joint US-Israeli attacks. Analysts warn prices could climb toward $90 or beyond if the strait remains blocked.