The Nigerian National Petroleum Company Limited (NNPCL) has once again adjusted its petrol pump prices upward, implementing a new rate of N915 per litre in Lagos and N945 per litre in Abuja. The move, which reflects a market-wide trend, has intensified the financial strain on Nigerians already struggling with a high cost of living and has sparked fears that the symbolic and dreaded price of N1,000 per litre is now imminent.
The latest increase, which took effect on Monday, is a direct consequence of a recent price adjustment by the Dangote Petroleum Refinery and escalating geopolitical tensions in the Middle East. As the state-owned oil company, NNPC’s pricing often serves as a benchmark for the entire downstream sector, and its decision has already triggered a domino effect among private marketers.
The Ripple Effect Across the Nation
The new pricing was immediately visible at NNPC retail outlets in major cities. In Abuja, the mega station along Obasanjo Way and other outlets in areas like Kubwa promptly displayed the new N945/litre rate. Similarly, in Lagos, stations in Igando and along the Badagry Expressway adjusted their pumps to N915 per litre.
This was not an isolated move. Other major and independent marketers followed suit, creating a new, higher price floor across the country:
- MRS Oil, a major distributor of Dangote refinery products, increased its price in Lagos to N925 per litre and as high as N955 per litre in the Southeast.
- TotalEnergies adjusted its price to N910 per litre in Lagos.
- AA Rano and Conoil in Abuja also raised their prices to N955 and N945 per litre, respectively.
This widespread increase confirms that market forces, unleashed since the removal of the fuel subsidy in mid-2023, are pushing prices higher across the board, with consumers bearing the full cost.
Why Are Prices Rising Again?
The current surge is driven by a combination of local and international factors.
1. The Dangote Refinery Price Hike:
The immediate trigger for this round of increases was the decision by the Dangote Petroleum Refinery to raise its ex-depot price—the price at which it sells fuel to marketers—from N825 to N880 per litre. As a major supplier to the Nigerian market, any adjustment from the Dangote refinery inevitably ripples through the entire supply chain. Marketers who buy from the refinery at a higher price have no choice but to pass that cost on to consumers at the pump.
2. Rising Global Crude Oil Prices:
The cost of crude oil on the international market is a primary determinant of the final price of petrol. Recent tensions between the United States and Iran have rattled the global oil market, pushing the price of Brent crude toward the $80 per barrel mark. The conflict has sparked fears of potential supply disruptions, especially concerning the Strait of Hormuz, a critical shipping lane for global oil. When the price of crude oil goes up, the cost of refining it into petrol also increases, a cost that is now directly felt by Nigerian consumers.
The N1,000/Litre Fear and Expert Warnings
With these pressures unlikely to ease in the short term, industry experts are now openly warning that petrol prices could soon cross the N1,000 per litre threshold. The current pricing at depots, where marketers buy their stock, is already between N920 and N925 per litre, leaving very little margin for retailers.
Olatide Jeremiah, the Chief Executive Officer of the market-tracking platform PetroleumPrice.ng, put the situation in stark terms: “Private depots are likely to increase petrol price to N1,000 in the coming days with the current trend observed in the market. If by tomorrow morning, crude price increases to $80 or exceeds that threshold, Nigerians would pay N1,000 at depots.”
He added that the only potential buffer against this relentless rise is the Dangote refinery. “Dangote remains a major determinant of petrol price,” he noted, suggesting that if the refinery can maintain its current price despite global pressures, it could help stabilize the market. However, with the refinery itself relying on imported crude, it remains vulnerable to the same global forces.
Conclusion
For ordinary Nigerians, the latest fuel price hike is another painful blow. It will inevitably lead to higher transportation fares, increased food prices due to logistics costs, and a further erosion of purchasing power. The promise of deregulation was market-driven efficiency, but for now, it has translated into market-driven volatility. As global events continue to influence local realities, the nation watches the petrol pumps with anxiety, wondering not if, but when the price will hit four digits.
Stay woke. Stay tuned. Stay with AKEWE NEWS.
