HomeNewsIsrael-Palestine Tensions Drive Fuel Price Hike Concerns

Israel-Palestine Tensions Drive Fuel Price Hike Concerns

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On Monday, Abuja filling stations faced a shortage of Premium Motor Spirit (PMS), commonly referred to as petrol. This sudden shortage triggered panic among motorists and residents, sparking concerns about a potential fuel scarcity in Nigeria’s capital.

According to a report by the Daily Post, the team discovered that many stations had run dry, especially in the Kubwa and Bwari areas of the Federal Capital Territory (FCT). Motorists hoping to refuel were turned away due to the lack of available products. Consequently, long queues began forming at stations along the Kubwa expressway that still had supplies.

Amidst this shortage, many motorists rushed to purchase fuel, stirred by rumors of an impending price hike. These speculations arose just two days after the Nigerian National Petroleum Company Limited (NNPCL) refuted claims about any planned price adjustments.

In a recent statement, the NNPCL emphasized, “We value our customers’ loyalty and have no plans to raise our PMS prices, contrary to widespread rumors.”

However, concerns over the ongoing Israel-Palestine conflict in Gaza have played a significant role in fuel price speculations. On Monday, global oil prices witnessed a sharp rise due to apprehensions that the Middle East tensions could hamper output.

Brent Crude reportedly rose to $86.83 a barrel, while West Texas Intermediate crude in the US increased to $85.30 a barrel.

The ongoing strife between Israel and Gaza mirrors the economic impact previously observed when Russia invaded Ukraine in February 2022, pushing oil prices to surpass $120 a barrel by June 2023. Given Nigeria’s reliance on imported refined petroleum products, it remains vulnerable to international market price shifts.

International affairs analyst Katch Ononuju commented on the current situation, emphasizing the inevitable spike in oil prices due to the Israeli-Palestinian crisis. He opined, “Hamas aims to bring the Palestinian issue to the forefront in negotiations between the Saudis and Americans.

The goal is to prompt the Saudis to establish peace with Israel. Their strategy appears successful.”

Over the weekend, Hamas initiated a significant military strike on Israel, marking one of the largest confrontations in decades. This has led to subsequent Israeli retaliatory strikes on Gaza.

Current reports estimate over 1,200 casualties, including nine Americans. With Israel mobilizing 100,000 reservists, an escalation in conflict seems imminent.

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