The pump prices of Premium Motor Spirit (PMS), also known as petrol, have increased to between N1,050 and N1,150 per litre, depending on the location of purchase, following price hikes implemented by the Dangote Petroleum Refinery and various depot owners.
Dangote Refinery, on Friday, raised its ex-depot price from N899 to N955 per litre, marking a 6.17 per cent increase from previous rates.
The increase is attributed to rising global crude oil prices, which recently reached $80 per barrel. Industry experts predict that without improvements in the exchange rate, further price hikes are likely in the coming weeks.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) indicated that consumers in remote areas might face prices exceeding N1,150 due to added logistics costs.
The Dangote Refinery’s decision reflects ongoing market dynamics influenced by crude oil costs and the deregulated nature of Nigeria’s fuel sector. As prices rise, consumers and businesses alike are bracing for the impact on transportation and goods
Fuel dealers have confirmed that fuel prices are likely to keep rising, as crude oil, a key ingredient in fuel production, has seen a recent upward trend.
Recall that the national president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, had warned that petrol prices could continue to increase if the cost of crude oil remained high.
“The crude price rose to $80 per barrel on Thursday. Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated in Lagos.
On Friday, January 17, the Dangote Petrochemical Refinery implemented an increase in the price of petrol, raising the cost of its PMS from N899 per litre to N955 per litre at its loading gantry.
In an email statement sent to its customers, the refinery announced that its refined products would now be sold at the new price.
Marketers purchasing between two million and 4.99 million litres would pay N955 per litre, while those buying five million litres or more would be charged N950 per litre.
This price adjustment marks a N55.50 increase, or 6.17 percent, from the previous rate of N899.50 per litre, which had been offered as a holiday discount in December.
The new rates apply to all stock balances yet to be lifted, as well as any pending stock as of the effective time, which will also be repriced.
The new pricing structure took effect on the evening of Friday, January 17.
The notice, titled “Communication on PMS Price Review,” began with the greeting: “Dear esteemed customer, Trust this email finds you well.”
“Kindly be advised that effective from 5:30 pm today (Friday), an upward adjustment has been implemented on the gantry price of Premium Motor Spirit. Quantity Previous Price (NGN/Litre): 2 million-9.99 million – N899.50; 10 million litres & above – N895,” the email read.
“Quantity New Price (NGN/ Litre): 2 million – 4.99 million – N955; 5 million litres & above – N950.
“Please note that all stock balances yet to be lifted as of the above-stated time are to be repriced at the new reviewed prices. We shall communicate with customers on their revised volumes based on the reviewed prices, in due course.”
The recent price hike has had significant repercussions across the downstream petroleum sector, especially in private depots and retail markets.
Oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), have projected a sharp rise in retail petrol prices, estimating that prices could reach N1,100 per litre in Lagos and surrounding states.
IPMAN also indicated that customers in the Federal Capital Territory might face a price of N1,150 per litre.
IPMAN’s national publicity secretary, Chinedu Ukadike, confirmed that petrol would now be sold for more than N1,000 per litre, particularly in remote areas across the country.
He attributed the price surge to the recent global rise in crude oil 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,” Ukadike said.
“Nigerians will likely pay over N1,150 at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980.
“This change is immediate because crude oil prices, too, are immediate. The refinery told us it has taken effect today, which means prices have increased already. Deregulation in this sector means price will be controlled by forces of demand and supply.
“So, if the supply force of supply says Brent crude has increased, it means domestic costs will also change. It is no longer funny now. Even marketers are affected by this up-and-down dwindling of prices. It affects our business.”
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has stated that retailers would be unable to buy petrol at current prices and sell it for N1,000 per litre, noting that the margin would exceed N45.
PETROAN’s national president, Billy Gillis-Harry, explained that the price of Dangote petrol is exclusive of additional charges from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which would be added to the margin by retailers.
Although Gillis-Harry was unable to confirm the exact price of petrol at filling stations, he acknowledged that it would exceed N1,000 per litre.
He further clarified that PETROAN members would continue selling at N935 per litre, as per their agreement with MRS Oil, until any changes are made to the terms.
“I’ve already told you that it’s difficult to do any effective amateur projection on price modulation. One of the reasons is that the cost of the production, the selling price, and the landing price, all of that will be taken into consideration. And the PIA (Petroleum Industry Act) has given provisions for how the price will be computed,” he said.
“So, at all times, we’ve got to depend on the PIA’s prescription for pricing. You know, the other day you called me and you told me about an association that said the price could be N500/litre. You can see how false the projections are. So, that means they are not informed by any empirical value,” Gillis-Harry stated.
He added that since receiving information about the price change, his team had been conducting thorough analyses.
“Because right now, we still have an obligation with the MRS to be selling at N935, and some of us bought products there. So, if they change their prices because of the Dangote price, then the conversation will be different.
“After the price of buying, there must be the price of logistics. Once that is computed, we can then look at what is the most humane profit margin,” he submitted.
An oil and gas expert and CEO of petroleumprice.ng, Olatide Jeremiah, stated that depots were likely to raise the loading prices of refined petroleum products due to the significant influence of the refinery.
“Dangote refinery’s influence on fuel price has become unmatched; private depots, major marketers, and independent marketers will compete with this new price. Therefore, Nigerians should expect an increase in the pump prices of petrol,” he explained.
Brent crude oil closed on Friday at $81.84, highest in 2025, and it is one major factor for the increase.”