Nigeria: Why fuel marketers increase petrol price –Report

*Filling stations in Lagos, and major cities in Northern Nigeria now sell a litre of petrol between initial average N860 and N970 per liter, compelling several energy consumers to pay as high as over N100 for the premium commodity in certain locations across the country

Isola Moses | ConsumerConnect

Nigerian oil marketers have increased the pump price of the Premium Motor Spirit (PMS), also called petrol, as filling stations in Lagos now sell a litre of petrol from initial N860 at N930.

ConsumerConnect learnt energy consumers are now compelled to pay at least N70 more than what it used to cost them to purchase a litre of the premium commodity just a few days ago.

The price hike for PMS has also become effective in parts of the country, including Abuja, FCT, and some other major cities in Northern Nigeria, Channels TV report said.

Investigation revealed the fuel retail outlets in some Northern cities are now selling a litre of petrol between N950 and N970, depending on the filling stations, as of Monday, March 31, 2025.

This price hike also represented a sharp increase of about N70 to N90 from the initial price of N880 last week, according to report.

In Lagos and Abuja, it was observed that filling stations, such as MRS Oil & Gas, Ardova Plc, Heyden, and others with special agreements with the Dangote Petroleum Refinery, Lagos, have adjusted their pumps to the new price with immediate effect.

Besides, petrol stations, including Matrix Energy, North-West Petroleum, Total Energies, Mobil, Bovas, and Enyo, among others also followed suit in jacking the pump price of the petroleum product.

Factors fuelling the latest PMS price increment

ConsumerConnect reports some stakeholders in the downstream petroleum sector have attributed the new price regime followed a recent announcement by Dangote Petroleum Refinery to halt temporarily, the sale of petroleum products in Naira in the country.

Dangote, in a recent statement, had the company’s decision to discontinue the sale of petroleum products to its key customers in the local currency.

Former President Muhammadu Buhari commissioned the Dangote Petroleum Refinery May 2023, at Ibeju-Lekki, Lagos State.

The announcement by the refinery came amid its price war with the NNPCL, according to reports.

Nigeria as Africa’s most populous country has faced energy challenges, with all its state-owned refineries non-operational for decades until 2024.

The country was heavily reliant on imported refined petroleum products, with the state-run NNPCL being the major importer of the essential commodities for years.

Mr. Tony Chiejina, Group Chief Communications Officer, stated: “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.”

The $20 billion oil-refining facility also noted the sales of its products in Naira had exceeded the value of Naira-denominated crude it received from the Nigerian National Petroleum Company Limited (NNPCL).

The company said: “As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”

Dangote Petroleum Refinery, however, stated that it remained committed to serving the Nigerian market, and would resume the sale of its products to the local market in Naira, as soon as was able to receive crude cargoes from the NNPCL in Naira as well.

Implications of Dangote-NNPCL price war on fuel hikes

It is recalled the $20 billion refinery, owned by Alhaji Aliko Dangote, President/Chief Executive (CE) of Dangote Industries Limited (DIL), February 26 this year, slashed the ex-depot price of petrol from N890 to N825 per litre.

Under the new arrangement, customers purchase the premium commodity at N860 per litre at selected outlets in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East.

Dangote has also reduced the price of diesel in recent times.

In following suit after Dangote’s cut in pump price of petrol for consumers, the NNPCL also reduced its retail price from N945 to N860 in Lagos, with a similar price reduction reflection at NNPCL outlets in other states of the Federation.

Some analysts and industry experts have hailed the price war.

They stated the development would “erode abnormal profit” being enjoyed by capitalists but petrol marketers, who still import the premium commodity have lamented the loss they incurred as a result of the sudden price drop.

As part of moves to reduce the strain on the US Dollars, and guarantee price stability of petroleum products, the Federal Executive Council (FEC), July 2024, in Abuja, had directed the NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira and not in United States’ greenback.

Subsequently, in March 2025, the NNPCL said its Naira-denominated crude sales agreement with the Dangote Refinery was structured for six months with March this year as the expiration date.

On renewal of Naira crude sales agreement to Dangote, others

It was gathered that amid the current confusing atmosphere in the downstream petroleum sector, the NNPCL, however, said that talks were on to replace the Naira-denominated crude sales contract to Dangote.

The state oil company reportedly said it had made available over 48 million barrels of crude oil to Dangote Petroleum Refinery since October 2024, under the Naira-denominated arrangement.

Besides, the NNPCL disclosed it had made over 84 million barrels of crude oil available to the private refinery since it commenced operations almost two years ago.

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