By Okeke Eunice
Retail outlets owned by the Nigerian National Petroleum Company Limited (NNPCL) have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, from N965 to N990 per litre in the Federal Capital Territory. The price has also been raised in Lagos, going from N925 to N960 per litre. This change comes despite a slight decline in crude oil prices on Tuesday.
Our reporters observed at several filling stations that the price adjustments had been implemented. The new price is N20, or a 2.1% increase, compared to the N970 retail price set by Dangote Refinery in collaboration with MRS filling station, Ardova, and Heyden.
The price hike reflects ongoing market dynamics and adheres to the petroleum sector’s deregulation policy, which allows prices to fluctuate based on supply and demand. This increase follows recent sector developments, including the start of loading operations at the Dangote Refinery, which is expected to transform Nigeria’s fuel supply chain.
On Friday, petrol prices surged to between N1,050 and N1,150 per litre after the Dangote Petroleum Refinery and other depot owners raised their prices. The $20 billion refinery increased its PMS price from N899 per litre to N955 per litre at its loading gantry.
Dealers have confirmed that petrol prices will likely continue to rise as crude oil prices have been trending upwards recently.
At an NNPCL station near Airport Junction, our correspondents found petrol being sold at N990 per litre, up from N965 the previous day. Another station at Life Camp was listing prices at N970 per litre but was not selling when our correspondent visited. A Mabuchi station still had petrol priced at N965 per litre.
Meanwhile, both major and independent marketers have increased their prices, with some stations now charging up to N1,030 per litre. Filling stations along Airport Road, Central Area, and Nyanya in Abuja have raised their prices to between N990 and N1,030 per litre, marking an increase of N60, or 6.18%, from the N970 price last Friday.
AYM Shafa and Matrix filling stations along Airport Road are selling at N1,000 per litre, while Shema station is charging N1,030 per litre.
As consumers adjust to these new prices, experts anticipate further price changes as Nigeria continues to align its energy policies with global market trends. A source at a private depot revealed that full-scale loading activities commenced on Monday, with bulk marketers now loading products from the Dangote refinery.
The source stated, “Sales of refined petroleum fully resumed today without any issues. Depot prices have risen to between N965 and N975 per litre, but at filling stations in Lagos, the price per litre has exceeded N1,000. In Akwa Ibom, prices have reached N1,100.”
In response, oil and gas expert Olatide Jeremiah explained that the changes in refinery, depot, and pump prices reflect market dynamics and highlight the ongoing deregulation of the petroleum sector. He noted, “The shifts in refinery, depot, and pump prices are a direct result of market forces and signify the deregulation of the petroleum industry.
Deregulation is a key solution to fuel shortages and rising pump prices. This price hike is temporary; it’s a consequence of former President Biden’s ban on Russian oil companies. As of this morning, Brent crude prices have dropped to $80 per barrel as Trump takes office.”
Meanwhile, Brent crude oil futures fell to $79.98 per barrel on Monday, down from $81 the previous Friday. By 11:20 AM ET, Brent crude for March delivery had decreased by 1.5% to $79.66 per barrel, while WTI crude for February delivery dropped by 1.8% to $76.46 per barrel. However, following yesterday’s inauguration, Brent crude rose slightly to $80.05 per barrel.
Under President Joe Biden, the United States had intensified sanctions on Russia, imposing heavy fines on its vessels.
Our correspondents observed that most NNPC stations in Lagos and Ogun sold PMS at N925 per litre until about noon, when the price increased. By 3 PM Tuesday, NNPC stations in Alapere and other parts of Lagos began selling at N960 per litre.
A tricycle rider reported that there was a long queue at one of the NNPC stations in Ketu early on Tuesday morning when the price remained at N925. However, the queue disappeared after the new price was announced. “We thought they were going to reduce the price, but now it’s going up again,” the rider said while looking for passengers.
Other filling stations, aside from NNPC, were selling PMS at prices ranging from N960 to N1,000. MRS, Heyden, and Ardova stations began selling Dangote refinery’s PMS at N970 per litre.
As of Tuesday, TotalEnergies was selling at N985, Matrix at N980, SGR in Mowe at N999, Petrocam at N1,000, Danco at N970, As-Sallam at N990, Sedabuk at N950, and Gatelink at N980, all along the Lagos-Ibadan Expressway.
Some stations were still selling older stock they had purchased at the previous rate of N899.