Retail outlets operated by the Nigerian National Petroleum Company Limited (NNPCL) have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦965 to ₦990 per litre in the Federal Capital Territory (FCT).
Similarly, the price in Lagos has been raised from ₦925 to ₦960 per litre.
This price hike comes despite a slight decline in crude oil prices on Tuesday.
Our checks at several filling stations revealed that the price adjustments have been implemented, with the latest increase being ₦20 or 2.1% more than the ₦970 retail price set by the Dangote refinery in partnership with MRS, Ardova, and Heyden.
The price surge is a result of ongoing market dynamics and is consistent with Nigeria’s deregulation policy, which allows fuel prices to fluctuate based on market conditions and supply-demand factors.
This increase follows significant developments within the petroleum sector, such as the commencement of loading operations at the Dangote Refinery, which is expected to reshape Nigeria’s fuel supply chain.
Just last Friday, petrol prices spiked between ₦1,050 and ₦1,150 per litre after the Dangote Petroleum Refinery and various depot owners raised their prices. The $20 billion refinery had increased its price from ₦899 to ₦955 per litre at its loading gantry.
Fuel dealers have confirmed that petrol prices are expected to keep rising, as crude oil, the major component of fuel production, continues to see an upward trend.
At an NNPCL station near Airport Junction, our reporters noted that the price had climbed to ₦990 per litre, up from ₦965 the previous day. Similarly, a station at Life Camp listed petrol at ₦970 per litre, though it was not selling at the time of our visit, while another station at Mabuchi continued to sell at the old price of ₦965.
Meanwhile, major and independent marketers have raised their prices to as high as ₦1,030 per litre. Filling stations located in key areas such as Airport Road, Central Area, and Nyanya in Abuja have adjusted their prices, with some now selling between ₦990 and ₦1,030 per litre. This marks a ₦60 or 6.18% increase from the ₦970 per litre price seen last Friday.
Stations like AYM Shafa and Matrix along Airport Road are now retailing petrol at ₦1,000 per litre, while Shema station has raised its price to ₦1,030.
As Nigerians brace for the impact of these higher fuel prices, industry experts predict that further price fluctuations are likely as Nigeria continues to align its energy policies with global market realities.
A source at a private depot reported that loading operations fully commenced on Monday, with bulk marketers now loading products from the Dangote refinery. According to the source, refined petroleum sales began without issue, and while depot prices have risen between ₦965 and ₦975 per litre, filling stations in Lagos have marked up the prices to over ₦1,000 per litre. In Akwa Ibom, prices have reportedly reached ₦1,100 per litre.
Oil and gas expert Olatide Jeremiah attributed the changes in refinery, depot, and pump prices to market forces, asserting that the petroleum sector’s deregulation is key to alleviating fuel scarcity and mitigating price hikes.
He also noted that the recent price increases are a temporary effect, largely influenced by former President Biden’s sanctions on Russian oil companies. On Monday, Brent crude oil futures dropped to $79.98 per barrel from $81 last Friday, and further declined to $79.66 per barrel for March delivery at 11:20 am ET. However, following the U.S. presidential inauguration, the price of Brent crude rose slightly to $80.05.
In Lagos and Ogun, most NNPC stations were still selling petrol at ₦925 per litre until noon Tuesday, when the price was increased to ₦960 at locations such as Alapere.
At a station in Ketu, there was initially a long queue when the price remained at ₦925 in the morning. However, the queue dissipated as soon as the new price was announced. A tricycle rider at the station expressed frustration, saying, “We thought they were lowering the price, but now it’s going up again.”
Aside from NNPCL stations, other filling stations have set their prices at varying rates, with some selling between ₦960 and ₦1,000 per litre. Stations like MRS, Heyden, and Ardova have started selling Dangote refinery’s PMS at ₦970 per litre.
By Tuesday, TotalEnergies had set its price at ₦985, Matrix at ₦980, SGR in Mowe at ₦999, Petrocam at ₦1,000, Danco at ₦970, As-Sallam at ₦990, Sedabuk at ₦950, and Gatelink at ₦980, all along the Lagos-Ibadan Expressway.
Interestingly, some stations are still selling old stock purchased at ₦899 per litre.