Nigeria's Petrol Prices Set to Rise Amid Hormuz Blockade

Petrol prices in Nigeria are expected to rise significantly following a blockade in the Strait of Hormuz, which has led to a surge in global oil prices, with Brent crude exceeding $103 per barrel. The blockade, ordered by President Donald Trump on April 12, aims to cut off Iranian oil, impacting global supply.

The Dangote Refinery, which operates below its capacity of 650,000 barrels per day, has increased its prices for petroleum to N1,275 per liter and diesel to N1,950 per liter as of April 8. The Nigerian National Petroleum Company Limited (NNPCL) has limited its allocation of crude to local refineries, which could lead to a minimum of 13 to 15 cargoes monthly for feedstock exchange.

Without government intervention, petrol prices could reach N2,000 per liter, with some filling stations already selling at N1,290 to N1,350 per liter. The situation is exacerbated by the geopolitical tensions in the Middle East, which have caused volatility in the oil market.