The price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to between N1,050 and N1,150 per litre, depending on the location, following a price hike by the Dangote Petroleum Refinery and various depot owners.
Industry dealers have confirmed that PMS prices are likely to keep rising due to the upward trend in crude oil prices, the primary component in fuel production.
Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), had earlier warned that petrol prices could rise if the price of crude oil continued to climb. He noted, “Crude oil prices rose to $80 per barrel today (Thursday). Without improvements in the exchange rate, we can expect an increase in PMS prices in the coming weeks,” Osifo said in Lagos.
On Friday, the Dangote Petroleum Refinery adjusted its PMS price, increasing it from N899 per litre to N955 per litre at its loading gantry. The $20 billion refinery informed its customers via email that its refined products would now be priced according to the new rates. Marketers purchasing between two million and 4.99 million litres would pay N955 per litre, while those buying five million litres and above would be charged N950 per litre.
This price hike, a N55.50 increase (or 6.17%), comes just weeks after a holiday discount that saw the price set at N899.50 per litre in December. The price change took effect at 5:30 pm on Friday and applied to all stock balances not yet lifted at that time.
In a statement titled “Communication on PMS Price Review,” the refinery outlined the revised pricing as follows:
- 2 million – 4.99 million litres: N955 per litre
- 5 million litres and above: N950 per litre
The adjustment has had a ripple effect throughout the downstream petroleum sector, particularly impacting private depots and retail markets. Despite having older stocks, private depots have increased their loading prices to N970 in Lagos and N1,000 in Calabar.
A breakdown of price movements at depots following the announcement of the new price showed Sahara Depot raised its price by N20 to N970 per litre, Pinnacle Depot increased its price to N970 from N921, and Wosbab Depot adjusted its price to N965 from N940. NIPCO raised its loading price by N30 to N980, while Rainoil also increased its price to N970 from N950. In Calabar, Alkanes Depot raised its price to N1,000 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has projected that retail petrol prices could rise steeply, potentially hitting N1,100 per litre in Lagos and surrounding states. In the Federal Capital Territory, prices could climb to N1,150 per litre. IPMAN National Publicity Secretary Chinedu Ukadike emphasized that the increase was largely driven by the surge in global crude oil prices, which directly impacts domestic production costs.
Ukadike stated, “Yes, Dangote has increased its price to N955. This is due to the rise in Brent crude. As crude prices go up, domestic production costs follow suit. Petrol customers in remote areas could pay over N1,150, while those near depots may pay N1,100 due to added logistics costs. Currently, ex-depot prices have risen to N980.”
According to the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), retailers could face margins higher than N45 per litre, given the increase in crude oil prices and associated costs. PETROAN National President Billy Gillis-Harry noted that although he could not confirm exact petrol prices at filling stations, it was likely to exceed N1,000 per litre.
Gillis-Harry further explained that his association’s members would continue selling at N935 per litre under an agreement with MRS Oil, but this could change depending on price adjustments related to Dangote’s pricing. He added that pricing decisions would depend on multiple factors, including production costs, logistics, and the Petroleum Industry Act (PIA) guidelines, which regulate pricing.
Oil and gas expert Olatide Jeremiah, CEO of petroleumprice.ng, highlighted that the influence of the Dangote refinery on fuel pricing is unprecedented. Private depots and marketers are now adjusting their prices to compete with Dangote’s new rates. “With Brent crude oil now at $81.84, the highest it’s been in 2025, this is one of the key factors driving the price increase,” Jeremiah stated.
As a result of these shifts, Nigerians can expect to see continued upward movement in petrol prices, particularly as crude oil prices and the influence of major refineries like Dangote continue to dictate the market.
