Numerous petrol stations in various parts of Abuja failed to dispense Premium Motor Spirit (PMS), commonly known as petrol, on Monday, causing alarm among motorists and residents who feared a potential resurgence of fuel shortages in the Nigerian capital.
Atlantic Reporters’ investigation revealed that several fuel stations in the Kubwa and Bwari areas of the Federal Capital Territory (FCT) were devoid of fuel, leaving drivers who stopped for refueling informed that the product was unavailable.
Consequently, queues formed at select filling stations along the Kubwa expressway that still had fuel in supply.
Concerned motorists, alarmed by the unavailability of fuel, resorted to panic buying, expressing concerns of an impending increase in petrol prices.
This speculation of a possible price hike comes just two days after the Nigerian National Petroleum Company Limited (NNPCL) refuted reports of an impending price hike, affirming its commitment to maintaining existing prices. The NNPCL stated in an official message on its X handle on Friday, October 6, “Dear esteemed customers, we at NNPC Retail value your patronage and we do not have the intention to increase our PMS pump prices as widely speculated.”
Nevertheless, Atlantic Reporters’ inquiries indicated that the recent speculation primarily stemmed from concerns related to the ongoing armed conflict between Israel and Palestine in Gaza.
Reports emerged on Monday, October 9, indicating that global oil prices surged due to apprehensions that the situation in Israel and Gaza could disrupt oil output in the Middle East.
Brent Crude, the international benchmark, reportedly surged by $2.25 per barrel to $86.83. Similarly, the price of West Texas Intermediate crude, the United States’ benchmark, rose by $2.50 per barrel to $85.30.
According to Reuters, oil prices escalated by over 3 percent on Monday as the military clashes between Israel and the Palestinian Islamist group Hamas sparked fears of a broader conflict in the Middle East. Brent crude reportedly climbed by $2.70, or 3.2 percent, to $87.28 a barrel by 11:43 GMT, while US West Texas Intermediate crude rose by $2.78 or 3.4 percent, reaching $85.57 a barrel. Both benchmarks saw an increase of more than $4 per barrel earlier in the session.
The Israeli-Palestinian conflict in Gaza appears to have the potential to impact the global economy, akin to the impact of Russia’s invasion of Ukraine in February 2022.
Following Russia’s invasion of Ukraine, oil prices soared, eventually surpassing $120 per barrel in June 2023. Despite being one of the world’s major oil-producing nations, Nigeria imports refined petroleum products, rendering it susceptible to fluctuations in international oil prices.
Katch Ononuju, an international affairs analyst, explained that the spike in international oil prices resulting from the Israeli-Palestinian crisis was virtually inevitable. He further suggested that the recent conflict aimed to involve the United States in negotiations between Saudi Arabia and Israel, with the goal of fostering peace between the two nations.
Hamas initiated a military attack on Israel on Saturday, leading to retaliatory Israeli air strikes on Gaza, a Palestinian-occupied territory. CBS NEWS reported a death toll of over 1,200 people on both sides, including nine Americans. The escalation of the conflict is anticipated, with Israel’s mobilization of 100,000 reservists for military engagement.