LAGOS, Nigeria – The price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to N900 per litre at private oil depots across Nigeria due to rising global crude oil prices and other market factors.
This sharp increase comes as oil marketers struggle to manage costs amid an unstable energy market. Checks by Vanguard over the weekend confirmed that major oil marketers, including Rainoil, Prudent, A.Y.M Shafa, and Mainland, adjusted their depot prices to N900 per litre.
This hike is expected to have a cascading effect, with pump prices at filling stations likely to rise in the coming days.
Rising Crude Prices Impact Local Fuel Market
The recent surge in petrol prices is largely attributed to the increase in crude oil prices. Brent crude, a major feedstock for refined petroleum products, climbed from $70 per barrel to $75 per barrel, significantly raising the costs incurred by refineries, including the $20 billion Dangote Refinery.
The 650,000 barrels per day capacity refinery is now grappling with additional expenses, as a significant portion of its crude supply is sourced in dollars from the international market.
Industry checks further revealed that over the weekend, the Dangote Refinery did not load fuel trucks under the Nigerian government’s Naira-for-Crude policy.
Instead, the refinery continued lifting through ships that operate at dollar-denominated rates to cover production costs.
Marketers Respond to Price Surge
Commenting on the situation, petroleum price monitoring platform PetroleumPriceNG reported that independent retail outlets have already adjusted their pump prices, selling petrol between N930 and N950 per litre.
The platform noted that “private depots have raised their depot prices to N900/L, and independent retail outlets are following suit. The inability of the federal government to resolve issues hindering the Naira-for-Crude policy will keep petrol prices rising.”
Additionally, the Major Energies Association of Nigeria (MEMAN) disclosed that the landing cost of imported petrol has spiked by N88 per litre within a week.
In its latest daily energy bulletin released on March 26, 2025, MEMAN reported that landing costs increased from N797 per litre the previous week to N885 per litre.
Industry Experts Warn of Further Price Adjustments
In a communique addressing the ongoing market volatility, MEMAN highlighted the challenges of transitioning from a regulated pricing system to a market-driven one.
“As the market stabilises, challenges will arise, and resistance from those accustomed to price control is inevitable. But with robust regulation, industry collaboration, and public transparency, Nigeria can fully realise the benefits of this transformation,” MEMAN stated.
The recent price surge is expected to exacerbate economic hardships for Nigerians, many of whom are already struggling with high inflation and rising costs of living.
With no immediate solution in sight, industry stakeholders and consumers alike remain on edge, anticipating further government intervention or regulatory adjustments to curb the relentless increase in fuel prices.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
