Petrol prices to crash as Strait of Hormuz reopens

The reopening of the Strait of Hormuz following a ceasefire agreement in the Middle East is expected to calm global oil markets and ease petrol prices, but experts have warned that Nigerians may not see immediate relief at the pumps.

They noted that while easing global oil prices could reflect in Nigeria’s downstream market, petrol prices may gradually decline to around N1,000 per litre if market forces are allowed to operate.

Two experts and oil marketers spoke in separate interviews with our correspondents on Friday in Abuja.

An energy law expert at the University of Lagos, Dayo Ayoade, said the ceasefire involving the United States, Iran and Israel had restored confidence in global shipping routes, but its impact on domestic fuel prices would take time. Punch