Private Oil Depots Raise Petrol Price to N900 Per Litre Amid Rising Global Costs

By DAYO ADESULU

Petrol Price Hits N900 Per Litre as Private Depots Adjust Rates

The price of Premium Motor Spirit (PMS), also known as petrol, has surged to N900 per litre at private oil depots across Nigeria. This increase of petrol price, up from over N890 per litre last week, is attributed to rising global crude oil prices and other market forces.

Depots Adjust Prices Amid Rising Crude Oil Costs

A market survey over the weekend revealed that major private oil depots, including Rainoil, Prudent, A.Y.M Shafa, and Mainland, have adjusted their depot petrol price to N900 per litre. This increase is expected to influence pump prices at filling stations nationwide, leading to a likely rise in the cost of petrol for consumers.

The global crude oil market has seen price fluctuations, with crude oil rising from $70 per barrel to $75 per barrel. This has significantly impacted refining costs, including those incurred by the Dangote Refinery, which processes 650,000 barrels of crude oil daily.

Dangote Refinery Pauses Truck Loading Amid Forex Challenges

In line with its recent announcement, the $20 billion Dangote Refinery did not load petrol trucks over the weekend under Nigeria’s ‘Naira for Crude’ policy. Instead, the refinery continued fuel shipments charged in dollars to cover operational costs, as most of its crude oil is still procured in dollars from the international market.

• Dangote Addresses Recent Increase in Fuel Prices
• https://www.thecheernews.com/aliko-dangote-foundation-extends-food-intervention-to-16-lgas-in-kwara/

Rising Landing Costs of Imported Petrol

Industry experts have pointed to increasing landing costs as another factor driving petrol price hikes. The Major Energies Marketers Association of Nigeria (MEMAN) reported that the landing cost of imported petrol price rose by N88 per litre within one week, increasing from N797 per litre to N885 per litre.

MEMAN, in its daily energy bulletin of March 26, 2025, highlighted concerns over the unstable petrol price. It noted that many oil marketers, including MRS and Ardova, have had to source petrol supplies in dollars, further escalating petrol price at both depots and retail outlets.

Oil Marketers Warn of Further Price Hikes

According to petroleumprice.ng, “The petrol price adjustment has affected oil marketers’ operations, with independent retail outlets now selling petrol between N930 and N950 per litre. Unless the Federal Government resolves the challenges surrounding the Naira-for-Crude policy, petrol price will continue to rise.”

Concerns Over Market Stability and Consumer Impact

The recent petrol price surge has sparked concerns among industry stakeholders and consumers, with many calling for regulatory intervention to stabilize the market. The fluctuating petrol prices have already led to increased transportation and production costs, adding pressure to Nigeria’s inflationary trends.

In its latest communique, MEMAN emphasized the need for structured deregulation of the sector. “As the market stabilizes, challenges will arise, and resistance from those accustomed to petrol price control is inevitable. However, with robust regulation, industry collaboration, and public transparency, Nigeria can fully realize the benefits of this transformation,” MEMAN stated.

The association further highlighted that a fully deregulated market would attract investments, enhance efficiency, and create a competitive fuel distribution system that benefits businesses and consumers alike.

Calls for Government Intervention

Amid the rising petrol price, economic analysts and industry experts have urged the Federal Government to take urgent action in resolving the forex challenges affecting fuel importation and refining.

Many stakeholders argue that unless forex stability is ensured, oil marketers will continue to experience difficulties in pricing, leading to further hikes that could burden the average Nigerian.

Outlook: What’s Next for Petrol Prices in Nigeria?

With private depots adjusting their prices to N900 per litre and independent retail outlets selling between N930 and N950 per litre, consumers may need to brace for higher petrol price in the coming weeks. The government’s ability to resolve issues surrounding the Naira-for-Crude policy and improve forex availability will be critical in determining whether fuel prices stabilize or continue to climb.

For now, Nigerians are left navigating the ripple effects of these price adjustments, as the fuel sector remains a key driver of economic activities and inflation in the country.

Conclusion

The recent petrol price hike to N900 per litre reflects broader economic challenges, including rising crude oil costs and forex instability. As stakeholders call for urgent government intervention, the future of fuel pricing in Nigeria remains uncertain. Will regulatory measures bring relief, or should Nigerians prepare for further increases? Only time will tell.

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