Several gas stations in parts of Abuja experienced shortages of Premium Motor Spirit (PMS), commonly known as petrol, on Monday, causing concern among motorists and residents about the possibility of fuel scarcity in Nigeria’s capital city.
Foxiz checks conducted by Foxiz Nigeria revealed that numerous filling stations in the Kubwa and Bwari areas of the Federal Capital Territory (FCT) had run out of petrol, leaving disappointed motorists who had stopped to refuel.
Consequently, queues formed at a few filling stations along the Kubwa expressway that still had petrol in stock.
Motorists, alarmed by the sight of some stations not dispensing fuel, rushed to buy amid speculations of an impending increase in fuel prices.
This latest speculation of a potential fuel price hike comes just two days after the Nigerian National Petroleum Company Limited (NNPCL) denied rumors of an imminent price hike in a statement posted on its official X handle on Friday, October 6, reassuring customers of its commitment to stable prices.
However, this renewed speculation appears to have been fueled by concerns over the ongoing armed conflict between Israel and Palestine in Gaza. Reports on Monday, October 9, indicated that oil prices had surged on the international market due to fears that the Israel-Gaza situation could disrupt oil output in the Middle East.
According to BBC, Brent Crude, the global benchmark, rose by $2.25 per barrel to $86.83. Meanwhile, the price of West Texas Intermediate crude, the U.S. benchmark, increased by $2.50 per barrel to $85.30 on Monday morning.
Reuters reported that oil prices surged by over 3 percent on Monday due to military clashes between Israel and the Palestinian group Hamas, sparking concerns of a broader conflict in the Middle East. Brent crude rose by $2.70, or 3.2 percent, to $87.28 a barrel, while U.S. West Texas Intermediate crude climbed by $2.78, or 3.4 percent, to $85.57 a barrel.
Both benchmarks experienced increases of over $4 per barrel earlier in the session, according to Reuters.
The Israeli-Palestinian conflict in Gaza is now shaping up to impact the global economy, reminiscent of the repercussions of Russia’s invasion of Ukraine in February 2022 when oil prices soared, reaching over $120 a barrel in June 2023.
Despite being a significant oil producer, Nigeria relies on imports of refined petroleum products, making it vulnerable to international market price fluctuations.
International affairs analyst Katch Ononuju explained that the spike in oil prices due to the Israeli-Palestinian crisis was inevitable, noting that Hamas was strategically attempting to involve the United States in discussions between Saudi Arabia and Israel.
Hamas launched a major military assault on Israel on Saturday, resulting in a surge of Israeli air strikes on Gaza. The conflict has caused over 1,200 casualties on both sides, including nine Americans, according to CBS NEWS. The situation is expected to escalate further as Israel has called up 100,000 reservists for the military campaign.
