Petrol prices have increased by ₦100 per litre across Nigeria following Dangote Petroleum Refinery’s decision to begin selling petroleum products in United States dollars, a move that shifts an estimated $1.84 billion foreign exchange (FX) burden to fuel marketers.

The refinery said the decision was necessitated by persistent challenges in accessing adequate crude oil under the Federal Government’s naira-for-crude arrangement. According to the company, it requires between 13 and 15 crude cargoes every month to maintain production but has received fewer allocations, forcing it to import crude oil and pay in dollars.

With marketers now required to source foreign exchange to purchase petrol from the refinery, the additional costs have been passed on to consumers, resulting in an increase of about ₦100 per litre at filling stations across the country.

Industry stakeholders warned that the development could further increase demand for foreign exchange, expose domestic fuel prices to exchange rate fluctuations and raise transportation costs, food prices and the overall cost of living.

The latest price adjustment is expected to have significant implications for businesses and households as Nigerians grapple with rising inflation and increasing economic pressures. Visit www.jocomms.com for more news.