In a development that has left many Nigerians reeling, the Nigerian National Petroleum Company Limited (NNPCL) has announced an upward adjustment in the pump price of Premium Motor Spirit (PMS), commonly referred to as petrol. This increase has pushed petrol prices to an all-time high of N990 per litre in Abuja and N965 per litre in Lagos, a move that reflects the evolving realities of Nigeria’s deregulated petroleum sector.
This latest price hike comes as part of a nationwide adjustment implemented by NNPCL on Tuesday, signaling a 2.1% increase compared to previous rates. Consumers in Abuja have already begun feeling the impact, as NNPCL retail outlets in key areas like Airport Junction have updated their rates from N965 to N990 per litre. In Lagos, a similar scenario has unfolded, with prices rising from N925 to N960 per litre, leaving consumers scrambling to adjust their budgets.
The price hike is not confined to Abuja and Lagos alone. Across the country, petrol prices have seen significant increases, with some locations now exceeding N1,000 per litre. In Akwa Ibom, for example, petrol is now being sold for as high as N1,100 per litre, further intensifying the burden on consumers. Major and independent marketers in Abuja’s Nyanya and Central Area districts have also raised their rates, with prices ranging between N990 and N1,030 per litre.
The adjustment in petrol prices is closely linked to the deregulation of Nigeria’s petroleum sector, a policy that allows fuel prices to be determined by the forces of supply and demand. This shift, aimed at addressing long-standing issues such as fuel scarcity, has also exposed the market to the volatility of global crude oil prices. As a result, Nigerian consumers are now more vulnerable to fluctuations in the global oil market.
One of the major factors influencing the current spike in petrol prices is the recent commencement of loading operations at the Dangote Refinery. The $20 billion facility, which has been touted as a game-changer for Nigeria’s energy sector, has adjusted its ex-depot price of PMS from N899/litre to N955/litre. This adjustment has, in turn, led to a ripple effect across the supply chain, with retailers increasing their pump prices to reflect the new rates.
Market insiders have also pointed to the rising cost of crude oil as a significant contributor to the price hikes. As of Monday, Brent crude oil prices dropped to $79.98 per barrel, down from $81 last Friday. However, prices later rebounded slightly to $80.05, driven by expectations surrounding U.S. President Donald Trump’s inauguration and its potential impact on global energy policies. The fluctuating price of crude oil, coupled with the increased cost of refined products, has left Nigerian consumers grappling with higher fuel costs.
At the same time, private depots have also adjusted their prices, with marketers now paying between N965 and N975 per litre for petrol. These increases are subsequently passed on to consumers, leading to pump prices exceeding N1,000 per litre in some areas. For instance, Aym Shafa and Matrix filling stations along Abuja’s Airport Road are currently selling petrol at N1,000 per litre, while Shema stations have set their rates at N1,030 per litre.
Experts in the oil and gas sector have weighed in on the situation, emphasizing that the price hikes are a natural consequence of Nigeria’s transition to a deregulated market. According to Olatide Jeremiah, an oil and gas analyst, the changes in refinery, depot, and pump prices reflect the realities of a market-driven economy. Jeremiah noted that while the current price increases are painful for consumers, they represent a necessary step toward achieving long-term stability in Nigeria’s petroleum sector. He added that deregulation remains the most effective solution to issues such as fuel scarcity and erratic pricing, as it encourages competition and efficiency within the industry.
Jeremiah also highlighted the impact of global events on Nigeria’s fuel market. He pointed to the sanctions imposed by former U.S. President Joe Biden on Russian oil companies, which disrupted global supply chains and contributed to rising crude oil prices. However, with President Donald Trump’s recent inauguration, there is hope for greater clarity on U.S. energy policies, which could influence global crude oil prices and, by extension, Nigeria’s fuel market.
Despite the challenges posed by the current price hikes, there is cautious optimism that the situation will stabilize in the coming months. Industry analysts predict that as the Dangote Refinery ramps up its operations and global crude oil prices moderate, Nigerian consumers could see more predictable petrol prices. However, for now, the reality of higher fuel costs is a pressing concern for millions of Nigerians, who are already grappling with rising living expenses.
As petrol prices continue to climb, consumers are urged to stay informed about the latest developments in the energy sector. Reliable and timely information is crucial for navigating these challenging times, and Trending Naija News is here to keep you updated every step of the way.
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