Israeli-Palestinian Conflict Sparks Fresh Fears of Fuel Price Hike in Abuja

Several filling stations in various parts of Abuja faced a shortage of Premium Motor Spirit (PMS), commonly known as petrol, on Monday, leaving motorists and residents anxious about the possibility of a new fuel scarcity crisis in Nigeria’s capital.

Investigation revealed that multiple filling stations in Abuja’s Kubwa and Bwari areas within the Federal Capital Territory (FCT) were unable to provide fuel, leaving frustrated motorists with empty tanks.

Consequently, long queues formed at some filling stations along the Kubwa expressway, where PMS was still available. Panic buying ensued as motorists feared an impending increase in fuel prices.

This speculation arises merely two days after the Nigerian National Petroleum Corporation Limited (NNPCL) refuted reports of any planned fuel price hike. In a statement released on October 6, NNPCL reassured its customers that there were no intentions to raise PMS pump prices.

However, the latest concerns regarding a potential fuel price hike can be traced back to the ongoing armed conflict between Israel and Palestine in Gaza. On October 9, reports emerged indicating that oil prices surged in the international market due to fears that the situation in the Middle East could disrupt oil production.

According to the BBC, Brent Crude, the international benchmark, saw a $2.25 per barrel increase, reaching $86.83. Simultaneously, West Texas Intermediate crude, the US benchmark, rose by $2.50 per barrel to $85.30.

Reuters reported a more than 3 percent surge in oil prices on Monday, attributing it to the military clashes between Israel and the Palestinian Islamist group Hamas, which raised concerns about a broader conflict in the Middle East. Brent crude rose by $2.70, or 3.2 percent, to $87.28 a barrel, while US West Texas Intermediate crude increased by $2.78, or 3.4 percent, to $85.57 a barrel.

This escalation in the Israeli-Palestinian conflict is reminiscent of the impact of Russia’s invasion of Ukraine in February 2022, which sent oil prices soaring, eventually surpassing $120 a barrel in June 2023.

Despite being a major oil-producing nation, Nigeria relies heavily on importing refined petroleum products, making it susceptible to fluctuations in international oil prices.

International affairs analyst Katch Ononuju explained that the spike in oil prices resulting from the Israeli-Palestinian crisis was inevitable. He suggested that the conflict aimed to involve the US in negotiations between Saudi Arabia and Israel, with the ultimate goal of encouraging peace between the two nations.

Hamas initiated a significant military assault on Israel on Saturday, sparking a wave of retaliatory Israeli airstrikes on Gaza, an area occupied by Palestinians. CBS NEWS reported a death toll exceeding 1,200 on both sides, including nine Americans.

The situation is expected to escalate further, as Israel has called up 100,000 reservists to participate in the ongoing military campaign.