The Nigerian National Petroleum Company Limited (NNPCL) has increased the official selling prices (OSPs) of its crude oil grades for May-loading cargoes, with adjustments of up to $7 per barrel, as global markets react to escalating tensions between the United States and Iran.
Industry data indicates that the national oil company raised prices across all 37 Nigerian crude streams. The flagship Bonny Light grade recorded an increase of about $6.13 per barrel compared to April levels, while Forcados crude rose by approximately $7.01 per barrel.
The price adjustments come amid heightened geopolitical uncertainty in the Middle East, which has tightened global supply expectations and driven crude benchmarks higher. Analysts say the development is positioning Nigeria to benefit from stronger oil revenues in the short term.
Recent market data shows Bonny Light trading around $124.86 per barrel, reflecting a premium of roughly $14 above Brent Crude, which has climbed past $110 per barrel. The rally follows concerns that prolonged hostilities between Washington and Tehran could disrupt critical supply routes, including the Strait of Hormuz.
Market sentiment has also been shaped by stalled diplomatic engagements and shifting energy alliances in the Middle East. The reported decision by the United Arab Emirates to exit the Organization of the Petroleum Exporting Countrieshas further intensified speculation about potential changes in global oil supply dynamics.
Data from the Central Bank of Nigeria shows that Bonny Light traded near $74 per barrel before the latest geopolitical escalation in late February, underscoring the sharp price surge recorded in recent weeks.
Despite the revenue upside for Nigeria, energy analysts caution that sustained increases in crude prices could translate into higher domestic fuel costs. This could further strain household incomes, particularly as transportation and goods prices respond to rising energy inputs.
Economists have therefore called for targeted government interventions to mitigate the impact on vulnerable populations, noting that while higher oil prices boost public finances, they also intensify inflationary pressures across the broader economy.