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The Traffic NG

petrol

Petrol prices have surged to a record ₦1,250 per litre following a shift to dollar-based crude sales, triggering fresh concerns about inflation and the rising cost of living across Nigeria.

Market sources say the price increase is linked to changes in the supply chain, with marketers now sourcing products under conditions tied more closely to foreign exchange fluctuations. The shift has exposed the downstream sector to exchange rate volatility, pushing prices upward.

The development has had an immediate impact on transportation costs, with commuters in major cities already reporting fare hikes. Businesses are also bracing for increased operational expenses, which could translate into higher prices for goods and services.

Industry stakeholders note that the removal of fuel subsidies and ongoing market reforms have contributed to price adjustments. They argue that while the changes are aimed at creating a more sustainable system, they come with short-term economic pressures.

Consumers have expressed frustration over the rising costs, calling for government intervention to cushion the impact. Some have urged authorities to implement measures that will stabilise the exchange rate and improve supply.

Economic analysts warn that sustained increases in fuel prices could drive inflation further, affecting purchasing power and overall economic stability. They stress the need for targeted policies to support vulnerable groups.

The federal government has maintained that reforms in the oil sector are necessary for long-term growth, even as it explores options to mitigate the impact on citizens.

As the situation evolves, attention remains on how policymakers and market players will respond to stabilise prices and ensure energy security.