The cost of Premium Motor Spirit (PMS), commonly known as petrol, has surged across Nigeria, with pump prices now ranging from N1,050 to N1,150 per litre, depending on location. The increase follows a recent adjustment in the price of petrol by Dangote Petroleum Refinery and various depot owners.
Fuel distributors have confirmed that prices are expected to rise further due to the recent increase in global crude oil prices. This price surge is a direct result of rising crude oil prices, which have recently crossed $80 per barrel.
According to Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the rise in crude prices will likely lead to higher petrol prices in the coming weeks.
“The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo said.
The price hike was triggered by the Dangote Refinery, which announced an increase in the price of petrol it sells to marketers. The refinery, which is the largest in Nigeria, raised its price from N899 to N955 per litre.
The price increase, effective from 5:30 PM on Friday, also saw slight variations based on the volume of petrol purchased. For example, orders of 2 million to 4.99 million litres would be priced at N955 per litre, while larger purchases of 5 million litres and above would be priced at N950 per litre.
This marks a 6.17 percent increase from the price of N899.50 per litre that had been available as a temporary discount in December 2024. The price change has already impacted private depots and retail stations across the country. In Lagos, some private depots have increased their loading costs to N970, while in Calabar, prices have reached as high as N1,000 per litre.
An analysis of price movements following the refinery’s price revision showed a notable increase across major depots. For instance, Sahara Depot raised its price by N20 to N970 per litre, while Pinnacle Depot’s price rose from N921 to N970. Similarly, NIPCO increased its prices by N30, from N950 to N980 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that petrol prices could rise further. Chinedu Ukadike, IPMAN’s National Publicity Secretary, stated that the surge in crude oil prices is directly impacting domestic production costs, leading to higher retail prices.
“Yes, Dangote has increased its price to N955. This is only because of the increase in Brent crude. Once it increases, the domestic production cost will also increase. Nigerians will likely pay over N1,150 at faraway locations, while locations close to the depot will pay N1,100,” Ukadike explained.
Further complicating matters, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has highlighted the challenges faced by retailers. PETROAN’s National President, Billy Gillis-Harry, mentioned that retailers could not sell petrol at prices below N1,000 per litre and would need to factor in additional costs related to logistics and regulatory charges.
