International market data reveals that the price of Brent crude oil has increased by 20%, signaling a potential further rise in petrol prices. At the beginning of 2023, Brent crude was around $78 per barrel, but it hit $83 per barrel last week, impacting petrol prices.
Petrol prices started the year at less than $2.50 per gallon and recently reached $2.90 per gallon, with analysts predicting it could reach $3 in the new week. The depreciation of the naira against the dollar and inflation have contributed to the rise in petrol prices in Nigeria since the deregulation of the downstream sector.
Opinion: The increase in international crude oil prices is likely to have significant implications for petrol prices in Nigeria, further impacting the cost of living for citizens. As Nigeria still relies on petrol imports due to non-functional refineries, it underscores the urgency to invest in domestic refining capacity to reduce dependence on international markets. Addressing the challenges in the downstream sector is crucial for stabilizing petrol prices and promoting economic stability in the country. Nigeria’s reliance on petrol imports due to non-functional refineries highlights the need for investment in domestic refining capacity to stabilize prices and promote economic stability.