LAGOS, NIGERIA – The price of petrol in Nigeria is set to rise sharply in April following the expiration of the Crude for Naira agreement between the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery.
The six-month deal, which ended in March, had allowed the supply of crude oil to the 650,000-barrel-per-day Dangote Refinery with payments made in Naira.
However, the failure to renew the agreement, coupled with rising global crude prices, has triggered an increase in pump prices across the country.
Under the expired agreement, the government facilitated crude oil supplies to the Dangote Refinery, which gradually reduced the price of petrol from over N1,000 per litre to approximately N820 in most areas.
However, Dangote Refinery recently announced it would no longer sell petrol domestically in Naira, raising concerns that prices will continue to escalate.
Rising Prices Across the Nation
As an early indication of the impending crisis, petrol prices have already surged across Nigeria. According to a price list obtained from MRS Oil and Gas by Financial Vanguard, new pump prices have reached up to N960 per litre in some regions.
The adjustments, effective from March 28, 2025, reveal a stark price disparity across different parts of the country, with northern states seeing the highest increases.
In Lagos, where prices remain comparatively lower, petrol is now selling at N930 per litre. The South West states, including Ogun, Oyo, Osun, Ekiti, Kwara, and Ondo, will see rates rise to N940 per litre.
Similarly, in the South South and South East regions—comprising Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, and Enugu—petrol will retail at N960 per litre.
The Federal Capital Territory, Abuja, along with states such as Kaduna, Benue, Kogi, Niger, Sokoto, Kebbi, and Nasarawa, will experience pump prices at N950 per litre.
The highest prices are recorded in states like Zamfara, Kano, Jos, Bauchi, Taraba, Adamawa, Borno, Katsina, Jigawa, Gombe, and Yobe, where petrol is now selling at N960 per litre.
Private Depots and Free Carrier Agreement (FCA) Impact
The sharp increase in prices is also being driven by private oil depots, which have adjusted their wholesale petrol prices to N900 per litre, up from more than N890 per litre over the weekend.
The Free Carrier Agreement (FCA) price, which dictates how much marketers pay before selling fuel to consumers, also varies significantly across different regions.
With crude oil prices on the rise globally, the cost of refined petroleum products is expected to follow suit. Industry experts warn that the situation could worsen if the government and key stakeholders fail to implement measures to stabilize the market.
Government’s Next Steps
The expiration of the Crude for Naira deal has raised concerns among consumers and businesses already struggling with economic challenges.
While there have been speculations that the Federal Government may seek to renegotiate terms with Dangote Refinery or introduce other price control mechanisms, no official announcement has been made regarding a resolution to the crisis.
As Nigerians brace for another round of fuel price hikes, the ripple effects on transportation costs, inflation, and general economic stability remain a significant concern.
The government’s ability to address this issue in the coming weeks will be crucial in mitigating the financial burden on millions of citizens.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
