Petrol prices in Nigeria expected to rise significantly

Nigeria's petrol prices are set to rise in the coming days. This change follows decisions by Dangote Petroleum Refinery and new sanctions from the United States on Iran. The Dangote Refinery has stopped selling fuel in naira, moving to transactions in U.S. dollars. This shift will lead to higher costs for fuel imports. As a result, petrol prices at filling stations across Nigeria are expected to increase, possibly reaching nearly N900 per litre. Global oil prices have also gone up. Brent crude, which is significant for Nigeria, rose to $72.16 per barrel, influenced by the U.S. sanctions on Iran, a major oil producer. Analysts suggest these sanctions have sparked a rise in crude prices. The Dangote Refinery previously reduced its petrol prices three times between January and March. However, it has now halted sales in naira, claiming it needs to align its sales currency with crude oil purchases, which are made in dollars. This situation means Nigerian consumers could face significant price hikes soon. Fuel depots in Nigeria have already adjusted their prices in response to rising crude costs. Reports show that petrol loading prices increased from N852 to N875 per litre. Major depots have begun to raise their prices, impacting consumers who had seen recent price decreases. Experts predict that Brent prices will remain in the mid-to-high $70s, making fuel imports more costly. With the Dangote Refinery no longer providing financial relief, prices could once again exceed N900 per litre.