Marketers are now expected to increase fuel prices, with costs projected to reach nearly N900 per litre. The expected increase is due to fresh United States sanctions on Iran, which have disrupted the global oil supply, leading to a rise in crude oil prices.
Domestically, Dangote Refinery’s decision to halt the sale of petroleum products in naira has further exposed the Nigerian market to shifting global prices.
In the international market, Brent crude, the benchmark for Nigeria’s oil, has risen to $72.16 per barrel, up from $71.75 per barrel on Thursday. The increase in oil prices follows the U.S. decision to impose new Iran-related sanctions, targeting entities including a Chinese ‘teapot’ refinery for purchasing Iranian crude. Iran, a major oil producer, pumps over three million barrels per day. Phil Flynn, senior analyst at Price Futures Group was quoted as saying:
We were looking for some kind of catalyst to move, and that was the ticket that pushed us back towards the high.” The impact of rising crude oil prices could have been less severe if not for Dangote Refinery’s decision to temporarily halt the sale of petroleum products in naira.
