Prices are projected to rise to about 720 naira a litre ($0.93; £0.73) from the current average of $0.77. If that happens, it'll be the third major price increase since President Bola Tinubu came to power in May.

The value of the naira has continued to freefall at the foreign exchange market since the government unified the exchange rates.

This latest warning comes as the local currency trades at an all time high of 910-945 naira against the dollar at the parallel market.

The Independent Petroleum Marketers Association of Nigeria (Ipman) says they fear fuel prices will continue to increase as long as the dollar rises in the foreign exchange market.

The oil marketers also said that many dealers who want to import the product have had to suspend the plan due to the scarcity of foreign exchange.

Chinedu Okoronkwo, the association's president, explained that "with fuel subsidy removal, the government is no longer determining pump prices but the market forces".

Apart from the foreign exchange crisis, the cost of transporting petroleum products from depots in Lagos to other parts of the country is also a contributing factor to the price of petrol.

This has forced oil marketers to sell fuel at higher prices to consumers especially those in northern Nigeria.

Nigerians are facing rising costs of food items and transportation amid high inflation rates and cost of living crisis.