By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦965 to ₦990 per litre in Abuja, with similar adjustments implemented across the country.
In Lagos, the price rose from ₦925 to ₦960 per litre, according to checks conducted at NNPCL outlets. These adjustments align with the deregulated pricing framework of Nigeria’s petroleum sector, influenced by market forces of supply and demand.
Nationwide Price Increases
The new pricing template follows recent developments in the petroleum industry, including the commencement of loading operations at the Dangote Refinery. On Friday, petrol prices at various filling stations spiked to between ₦1,050 and ₦1,150 per litre after depot owners and the Dangote Refinery raised prices.
The Dangote Refinery, a $20 billion project, increased its PMS ex-depot price from ₦899 to ₦955 per litre.
At NNPCL stations in Abuja, prices varied: Airport Junction sold petrol at ₦990 per litre, up from ₦965, while Life Camp listed ₦970 per litre but was not dispensing. Mabuchi stations maintained the old price of ₦965 during inspections.
Meanwhile, other marketers, including major and independent dealers, have adjusted their prices, with some reaching ₦1,030 per litre. Along Airport Road and in other areas like Nyanya, prices ranged from ₦990 to ₦1,030 per litre.
Market Forces and Expert Insights
Experts attribute the ongoing price hikes to global oil market dynamics and Nigeria’s transition to a fully deregulated petroleum sector.
Oil and gas analyst Olatide Jeremiah noted that deregulation, while leading to short-term price hikes, remains a long-term solution to fuel scarcity and instability. “The current hike reflects market realities, including crude oil price fluctuations and the shift away from regulated pricing,” he explained.
Crude oil prices have also fluctuated in recent days. Brent crude futures dropped to $79.98 per barrel on Monday but rebounded slightly to $80.05 following U.S. President Donald Trump’s inauguration, amid anticipation of his energy policy agenda.
Future Outlook
As petrol prices continue to adjust, stakeholders predict further volatility. Bulk marketers have started loading products from the Dangote Refinery, with depot prices ranging between ₦965 and ₦975 per litre. In Lagos and Akwa Ibom, retail prices have crossed ₦1,000, reflecting regional variations in supply costs.
While consumers grapple with rising costs, the government’s deregulation policy aims to stabilize the petroleum sector, ensuring long-term efficiency and sustainability.
