Crude oil prices gained on Monday during the Asian trading session over possible supply disruption due to the ongoing fight between Israel and Iran-backed forces in the Middle East.

The Brent crude oil, against which Nigerian crude oil is priced, appreciated by 51 cents or 0.71% to $72.49 barrels at 3.30 am Nigerian time while the U.S West Texas Intermediate crude oil expanded by 43 cents or 0.63% to $68.61 a barrel.

The rise in oil prices was largely driven by the escalating tensions in the Middle East, involving Iran, a key crude oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).

On Saturday, Israel announced the killings of key members of Hezbollah backed by Iran and warned of further consequences despite Iran and other vested interests in the region saying there would be retaliation.

Israel on Sunday announced it bombed Houthi targets in Yemen to expand its confrontation with Iran’s allies two days after killing Sayyed Hassan Nasrallah, the leader of Hezbollah in Lebanon.

The uncertainty surrounding the fight bolstered oil sentiment as traders have started factoring in possible disruption that could dampen oil supplies from the region.

The U.S. on Sunday announced it was strengthening its presence in the Middle East, with the Pentagon saying that should Iran, its partners, or its proxies target U.S. personnel or interests, Washington “will take every necessary measure to defend our people”.

The House of Representatives has urged the President Tinubu-led government to end the reign of monopoly in the Nigerian oil sector and allow independent marketers to lift petrol directly from the Dangote Refinery.

The latest development follows concerns raised by Oboku Oforji, the member representing Yenagoa/Opokuma Federal Constituency, Bayelsa State.

Investors King gathered that while NNPCL was initially named as the sole off-taker of the refinery’s product, recent changes allowed Major Marketers access to PMS.

However, Oforji lamented the monopoly ravaging the country’s oil sector where only the NNPC and Major Marketers are allowed to lift petrol from the refinery.

According to Oforji, if the Federal Government fails to intervene, and stop the monopoly, Nigerians will continue to suffer the effects of fuel scarcity.

He warned that independent marketers have threatened to begin the importation of the product to sustain their business.

He said, “The House is worried that NNPCL and the major marketers are exclusive off-takers, which spells monopoly and is equivalent to greed. This is the same NNPCL that has failed to manage our crude and refineries for decades.

“If this monopoly is not nipped in the bud, the suffering of Nigerians caused by the scarcity of PMS will continue, and we all know the implications for the economy.

“No wonder the late MKO Abiola of blessed memory, in a viral video some years ago, lamented that the NNPCL lacks transparency and accountability.

“The House is disturbed that allowing the NNPCL and major marketers to lift Premium Motor Spirit from the refinery to the exclusion of independent marketers is not good enough.”

“IPMAN representatives have expressed fears that they may be forced to resort to fuel imports to sustain their businesses,” he added.

Oforji thanked Dangote Refinery for helping the country meet the increasing demand of petrol.

According to him, with the refinery, Nigeria’s Gross Domestic Product will experience a steady increase.

His words, “The House notes that by this achievement, Nigeria is driving towards energy self-sufficiency, cost and foreign exchange savings, meeting the increasing demand for fuels, and attracting foreign capital investment. The generation of foreign exchange through the export of finished products, conservation of foreign exchange, and significant value addition will contribute to an increase in Nigeria’s Gross Domestic Product.

“The House further notes that given the high demand by millions of Nigerians for PMS and the ordeal they go through to obtain it, NNPCL should allow independent marketers to lift the product from the Dangote refinery,” he added.

If the prevailing monopoly is not nipped in the bud, Oforji noted that the suffering of Nigerians caused by the scarcity of PMS will continue with disastrous consequences for the economy, and we all know the implications,” he noted.

The Chairman of BUA Foods Plc, Abdul Samad Rabiu, has revealed that his company manufactures and sells the cheapest products in the Nigerian market.

Investors King reported that Abdul Rabiu recently announced plans to expand the pasta production unit of the company.

After signing an agreement with FAVA (Italy), one of the world’s leading pasta equipment manufacturing companies, BUA Foods renewed its planned expansion.

Rabiu announced the expansion in a statement signed on Wednesday by BUA Foods Director of Marketing and Corporate Communications, Adewunmi Desalu.

However, speaking at the 7th annual general meeting of the company held in Abuja on Thursday, Rabiu recounted how his firm maintained the price of flour at 50,000 Naira when it was sold for 70,000 Naira.

The businessman blamed manufacturers and distributors for the scarcity of food in the country.

He said, “BUA products are the cheapest in the market. And because we have other companies producing similar products, it is very difficult to price them low. For instance, a few months ago, the price of flour went as high as N70,000 per bag. We retained ours at N50,000 for quite some time to try and force other companies to also come down. But when they saw it was going to happen, they deliberately stopped production, and the prices kept going up.

“So when we were at N50,000, the distributors added N20,000 and were selling at N70,000 per bag. At one point, customers were making almost N20 million per truck of 75 tonnes of flour.

Yes, it happened. While we were there at N50,000, still puffing and praying for the prices to come down, some companies were not happy that we were keeping the prices low.

“That was why they suddenly stopped production to create scarcity. With that scarcity, the price kept going up. So that is part of the problem. When we saw that, we knew it did not make sense for us to continue selling at N50,000 when the market was at N70,000. Our production is substantial, but there are two other companies that are bigger than us.

However, we believe that by next year, we are going to be bigger than them.”