Iran war deal: When will Nigerians see lower fuel and food prices?
By Aboki Forex —
A tentative deal to end the Iran war has raised questions about when prices will drop for petrol, food, and other goods. The conflict disrupted oil flows through the Strait of Hormuz and hit supply chains for fertiliser, food, and footwear.
Even with a ceasefire, experts say it will take time for savings to reach local markets. Refineries pay for crude oil a month or more in advance. So even if oil prices fall now, the cheaper supply will not hit pumps immediately.
Brett House, an economist at Columbia Business School, said the war has left the world worse off. He noted that after three months of fighting, the American consumer is not better off. The same applies to Nigerian consumers who depend on imported refined fuel and food items.
Oil prices dropped to about $80 per barrel after the deal was announced. Before the war, crude was around $67. During the conflict, it peaked above $120. But lower international prices do not always mean lower prices at Nigerian filling stations. Importers still face high logistics costs, a weak naira, and other charges.
For now, analysts advise Nigerians to expect a slow decline rather than a sudden drop. The full effect may only show up in the next quarter if the peace deal holds and global supply chains stabilise.