Crude prices fell yesterday by over 14 per cent amid relaxed tension in the Middle East as motorists groan over rising energy costs, especially Premium Motor Spirit (PMS) and diesel.

Across most fuel stations in Abuja, petrol was selling between N1,261 in retail outlets of the Nigerian National Petroleum Company Limited (NNPCL) and N1,400 at major and independent retail stations.

Starting at about $114 in the early hours of the day, Brent fell to $98 per barrel before the close of trading.

The retreat followed the statement yesterday by the United States (U.S.) President Donald Trump, indicating that America and Iran had in the last two days “very good and productive conversations regarding a complete and total resolution” on hostilities in the Middle East.

Meanwhile, the Nigeria Employers’ Consultative Association (NECA) has warned that rising global oil prices are translating into increased energy costs in Nigeria, with significant consequences for businesses and households.

Iran’s Islamic Revolutionary Guard Corps (IRGC), according to local media, appeared to have shifted in tone yesterday after Trump’s 24-hour deadline for hostilities against power infrastructure was moved forward due to the closure of the Strait of Hormuz.

In a departure from threat retaliation, Iran, in a statement local media said the IRGC, denied targeting desalination facilities in Gulf states. It instead accused U.S. forces of striking water infrastructure on Iran’s Qeshm Island. The Guards warned that any U.S. attack on
Iranian power plants would be an “inhumane act”, citing the cascading impact on hospitals, water systems, and critical civilian services.

Since the war started, the Dangote Refinery has implemented price increases about five times, with the latest taking effect over the weekend when the refinery’s ex-depot price was raised to N1,275 per litre.

A commercial driver, Friday Abba, told The Guardian that the current pump price remained unbearable, adding that although the price would be passed on to consumers, most people were struggling to pay.

DIRECTOR-GENERAL of NECA, Adewale-Smatt Oyerinde, in reaction, yesterday, to ongoing tensions in the Middle East and their impact on global oil markets, noted that the trend was driving up domestic fuel prices and worsening inflationary pressures across the economy.

He stated that the situation reflected a growing paradox, where increases in crude oil prices are pushing up domestic energy costs, placing pressure on businesses and eroding the purchasing power of citizens.

According to him, rising crude oil prices are pushing up domestic energy costs, squeezing businesses and worsening the cost of living for citizens.

He cautioned that if not properly managed, the gains from rising oil prices would be completely eroded by inflation and economic hardship.

Oyerinde noted that fuel prices had risen sharply in recent days, with petrol prices in some locations exceeding N1,300 per litre and diesel approaching N1,800 per litre, reflecting the impact of global oil price movements.

Stressing that energy costs sit at the heart of Nigeria’s economy, he said: “Once fuel prices rise, the effects are immediate and widespread; transport costs increase, food prices rise, and the overall cost of doing business escalates,” he said.

Oyerinde stressed that businesses, particularly in manufacturing, agriculture and logistics, were already under significant pressure.

“For many firms that rely on diesel for operations, price levels are becoming increasingly difficult to sustain. Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations,” he said.

Calling for immediate action, he urged the government to stabilise the downstream sector and support vulnerable industries.

On the long-term outlook, Oyerinde emphasised the need for structural reforms, adding that Nigeria’s resilience would not be determined by oil prices, but by how effectively they are being managed.

According to him, this is a moment to strengthen institutions, improve transparency and invest in sustainable energy solutions.