US-Iran war: Nigeria tops Africa in petrol price surge
Nigeria recorded the highest increase in petrol prices across Africa during the first half of 2026, with pump prices rising by 39.5%, despite improvements in domestic refining capacity. The surge has been largely attributed to the economic fallout from the ongoing US-Iran conflict, which has disrupted global crude oil supply and driven up international oil prices.
The conflict has triggered supply chain disruptions, higher freight costs, and increased shipping risks around key oil routes, forcing crude and refined petroleum prices upward worldwide. Although Nigeria has expanded local refining in recent months, industry analysts say the country remains exposed to global market volatility through import costs, logistics, and exchange rate pressures.
The rising fuel prices have intensified transportation costs, increased inflationary pressures, and raised the cost of goods and services across the country. Economists warn that prolonged geopolitical tensions could further strain household incomes and slow economic growth if global energy markets remain unstable.
Despite efforts to boost domestic fuel production, recent data also show a sharp increase in petrol imports following a decline in local supply, highlighting the challenges facing Nigeria’s downstream petroleum sector.
