Britain faces fuel panic as global oil markets react to US-IRAN war tensions
Rising geopolitical tensions in the Middle East are beginning to send shockwaves through global energy markets, triggering panic buying of petrol in the United Kingdom while Nigeria appears relatively insulated due to growing domestic refining capacity.
Motorists across parts of Britain rushed to filling stations this week amid fears of supply disruptions following the escalating conflict involving the United States and Iran.
Reports indicate that several petrol stations have run dry while others are witnessing long queues as consumers scramble to secure fuel before prices climb further.
Energy analysts warn that the situation could worsen if the conflict intensifies, particularly because of disruptions around one of the world’s most critical oil transit routes — the Strait of Hormuz.
US-Iran war fuels global oil market volatility as Nigeria banks on Dangote refinery
The unfolding US-Iran war impact on global fuel supply is already creating visible pressure on fuel markets in Europe.
According to reports from British media outlets, motorists have begun panic buying petrol after fears grew that oil shipments from the Middle East could be disrupted. In several parts of the United Kingdom, drivers have complained about empty pumps and steep price increases at filling stations.
In Maidstone, Kent, petrol prices reportedly surged to 137.9 pence per litre, significantly above the national average. Meanwhile, motorists in Bothwell near Glasgow have paid as much as 169.9 pence per litre.
The rapid spike in fuel costs comes amid growing concerns about the security of the Strait of Hormuz, a narrow maritime passage linking the Persian Gulf to the Arabian Sea. Roughly one-fifth of the world’s crude oil supply passes through the channel daily.
With tensions escalating between Iran and Western allies, shipping activity through the route has reportedly slowed dramatically.
Energy trackers recorded that only five oil tankers passed through the strait on March 1, compared to the usual average of about 60 vessels per day. The sudden drop in traffic has heightened fears of global supply disruptions and pushed benchmark oil prices upward.
Brent crude briefly climbed to about $82 per barrel earlier this week, marking its highest level in more than a year.
While consumers in Britain grapple with uncertainty and fuel shortages, Nigeria appears to be benefiting from increased domestic refining capacity, particularly from the massive refinery complex built by Aliko Dangote.
Industry observers say the operations of the Dangote Petroleum Refinery have helped stabilise the availability of petrol across the country despite the global turbulence triggered by the US-Iran war impact on global fuel supply.
Although petrol prices in Nigeria recently increased from around ₦820 per litre to approximately ₦937, the country has largely avoided the widespread queues that historically accompany supply disruptions.
Market analysts attribute the relatively stable supply situation to the local refining capacity now available through the Dangote facility.
Prior to the refinery’s operation, Nigeria relied heavily on imported refined petroleum products.
Any disruption in global supply chains often translated directly into scarcity at domestic filling stations.
Energy sector stakeholders believe the situation could have been far worse if the country still depended entirely on imported petrol.
“Imagine Nigeria without a functioning refinery at a time like this,” an industry analyst said. “We would likely see long queues nationwide, a thriving black market, and businesses struggling due to fuel shortages.”
Instead, the presence of the Dangote refinery has significantly reduced the country’s vulnerability to external supply shocks.
However, the refinery itself has acknowledged that stable crude oil supply remains essential to sustaining its production levels.
During a recent engagement with stakeholders, officials from the refinery indicated that insufficient local crude supply has forced the company to source part of its feedstock from international markets.
Industry groups have therefore urged the government to ensure consistent domestic crude allocation to support local refining.
The Petroleum Products Retail Outlet Owners Association of Nigeria has called on authorities to prioritise crude supply to domestic refineries, particularly the Dangote facility, to strengthen Nigeria’s energy security.
Speaking on the issue, PETROAN spokesperson Joseph Obele said Nigeria must adopt a proactive strategy to shield its petroleum sector from geopolitical shocks such as the US-Iran war impact on global fuel supply.
The association’s national president, Billy Gillis-Harry, also expressed concern about the widening military conflict involving the United States, Iran, Israel, and other allies.
According to him, instability in the Middle East could have far-reaching consequences for global energy markets and for countries that depend heavily on imported petroleum products.
Experts warn that the situation remains highly fluid, with oil markets expected to remain volatile in the coming weeks.
Should tensions around the Strait of Hormuz escalate further, the global economy could face another period of energy price instability reminiscent of earlier oil crises.
For Nigeria, however, analysts say the expansion of domestic refining capacity may prove critical in cushioning the country against the worst effects of global fuel disruptions.
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