Petrol Prices in Nigeria Surge to Over ₦1,100 per Litre Amid Rising Crude Oil Costs
The price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to between ₦1,050 and ₦1,150 per litre in different parts of Nigeria, following a price hike by the Dangote Petroleum Refinery and independent depot operators.
Rising Crude Oil Prices Drive Petrol Cost Up
Industry players have warned that petrol prices may continue to increase due to the rising cost of crude oil, a key component in fuel production.
The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, had earlier predicted this trend, stating that if crude oil prices remained on an upward trajectory, petrol costs would inevitably follow suit.
“Crude oil prices reached $80 per barrel today (Thursday). Without an improvement in the exchange rate, petrol prices will rise in the coming weeks,” Osifo explained.
Dangote Refinery Raises Petrol Prices
On Friday, the Dangote Petroleum Refinery increased its petrol price from ₦899 to ₦955 per litre at its loading gantry.
According to an email sent to its customers, the refinery stated that:
• Buyers purchasing between two million and 4.99 million litres would now pay ₦955 per litre.
• Bulk buyers acquiring five million litres and above would pay ₦950 per litre.
This marks a ₦55.50 (6.17%) increase from the ₦899.50 per litre discount the refinery had previously announced in December.
The statement, titled “Communication on PMS Price Review,” clarified that the new prices took effect from 5:30 p.m. on Friday. It also specified that any unsold stock as of that time would be repriced according to the updated rates.
Impact on Private Depots and Retail Markets
Following Dangote’s price adjustment, private depots raised their prices despite having old stock.
• Depot prices in Lagos rose to ₦970 per litre.
• In Calabar, depot rates hit ₦1,000 per litre.
A breakdown of depot price movements revealed the following increases:
• Sahara Depot: ₦970/litre (up from ₦950).
• Pinnacle Depot: ₦970/litre (previously ₦921).
• Wosbab Depot: ₦965/litre (up from ₦940).
• NIPCO Depot: ₦980/litre (up from ₦950).
• Rainoil Depot: ₦970/litre (previously ₦950).
• Alkanes Depot (Calabar): ₦1,000/litre.
• Zone 4 & Mainland Depots: ₦1,005/litre (up from ₦985).
Oil Marketers Predict Further Increases
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has projected that petrol prices could climb even higher, reaching ₦1,100 per litre in Lagos and surrounding states.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, warned that prices in the Federal Capital Territory (FCT) could hit ₦1,150 per litre.
“Yes, Dangote has increased its price to ₦955, and this is mainly due to the rising price of Brent crude oil. When crude prices go up, domestic production costs also rise,” Ukadike explained.
He further noted that:
• Petrol in remote areas might sell for over ₦1,150 per litre.
• Depots have raised ex-depot prices to ₦980 per litre.
• The increase takes immediate effect due to market deregulation.
Retailers Struggle with Pricing Adjustments
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) emphasized that selling petrol at ₦1,000 per litre would leave retailers with minimal profit margins.
Billy Gillis-Harry, PETROAN’s National President, pointed out that additional costs imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must be factored into pricing.
He confirmed that, for now, PETROAN members were still selling at ₦935 per litre under an agreement with MRS Oil, but this could change depending on market conditions.
Industry Experts Weigh In
Olatide Jeremiah, CEO of petroleumprice.ng, stated that private depots and independent marketers would likely adjust their prices in response to Dangote Refinery’s latest hike.
“Dangote Refinery’s influence on fuel prices is now significant. As Brent crude oil has reached $81.84 per barrel, the highest in 2025, it is a key factor behind the rising fuel costs,” he explained.
With crude oil prices and exchange rates remaining volatile, consumers should brace for further fluctuations in petrol prices in the coming weeks.
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