- Petrol prices climb to nearly ₦1,000 per litre despite cheaper crude oil.
- Marketers blame tight supply and refinery disruptions for sustained price hikes.
Despite cheaper crude oil and a stronger naira, Nigeria’s petrol prices have continued to soar, confusing consumers. The recent jump from around ₦865 to almost ₦1,000 per litre has raised questions nationwide.
Although crude oil and foreign exchange rates typically determine pump prices, both have remained relatively stable in recent weeks. The naira has strengthened to about ₦1,477 per dollar from ₦1,700 earlier this year. Likewise, Brent crude has fallen to nearly $60 per barrel from above $80 earlier in the year.
However, depot owners and the Dangote Refinery recently increased their petrol prices, increasing pump costs. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), depot operators adjusted rates when Dangote temporarily paused petrol loading. IPMAN President Abubakar Shettima stated that prices are expected to drop once Dangote resumes operations fully.
Findings revealed that depots such as Matrix, RainOil, and Aiteo raised ex-depot prices to between ₦850 and ₦900 per litre. Consequently, petrol stations across Lagos, Ogun, and Abuja increased pump prices to match the higher costs. The Nigerian National Petroleum Company Limited (NNPC) retail outlets now sell petrol at ₦928 per litre.
An NNPC spokesperson explained that the price adjustment reflects higher depot costs, directly affecting retailers’ selling prices. Dangote Refinery responded that it had resumed loading operations and intensified distribution to stabilise supply. Officials noted that diesel prices had already been reduced, signalling efforts to ease market pressures.
Industry experts, however, warned that Nigeria’s petrol prices may remain high if refinery output does not stabilise soon. They attributed the volatility to limited refining capacity, speculative pricing, and supply disruptions.
Ultimately, while global crude prices and exchange rates suggest relief, domestic bottlenecks continue to drive pump price increases. Until local refining becomes consistent and transparent, Nigerians may keep facing the paradox of rising fuel costs in a period of cheaper crude and a stronger currency.