By Okafor Joseph Afam
January 22, 2025

The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in petrol prices, with the commodity now selling for N990 per litre in Abuja and N960 in Lagos. This adjustment represents a N20 or 2.1% increase over the N970 price recently set by Dangote Refinery in collaboration with MRS Filling Station, Ardova, and Heyden.

The price hike aligns with the government’s deregulation policy, allowing market dynamics to dictate prices based on supply and demand. It comes amid the commencement of operations at the $20 billion Dangote Refinery, which is expected to transform Nigeria’s fuel supply chain.

Last Friday, petrol prices soared to between N1,050 and N1,150 per litre after the Dangote Refinery raised its ex-depot price from N899 to N955 per litre. Depot owners followed suit, citing rising crude oil prices as the primary factor influencing the hike.

At an NNPCL station in Abuja’s Airport Junction, the pump price was observed to have risen from N965 to N990 per litre, while other stations in the city listed prices ranging between N970 and N1,030. Similarly, major and independent marketers nationwide have adjusted prices upwards, with some Lagos stations now selling petrol for as high as N1,000 per litre.

In Akwa Ibom, petrol prices have reportedly reached N1,100 per litre, underscoring the impact of these changes across the country.

Experts React to Deregulation and Rising Costs

Energy experts have linked the price increases to market deregulation and global economic pressures. Olatide Jeremiah, an oil and gas expert, explained that the current hikes reflect global market forces, particularly the influence of crude oil prices and international sanctions.

“This hike is temporary. It’s a ripple effect of global policies, including the ban on Russian oil under former U.S. President Biden. However, with Brent crude prices now stabilizing around $80 per barrel, we anticipate some relief in the coming weeks,” he said.

Brent crude oil futures, which had dropped to $79.98 per barrel on Monday, saw a slight rebound to $80.05 following President Trump’s inauguration.

Consumers Adjust to New Reality

Nigerians are grappling with the fluctuating petrol prices, with many expressing frustration over the unpredictability of costs. A tricycle rider in Lagos remarked, “We thought they were reducing prices, but they increased them again. This is becoming unbearable.”

At Lagos stations such as MRS, Ardova, and Heyden, Dangote Refinery’s petrol was being sold for N970 per litre. TotalEnergies outlets listed prices at N985, while others, such as Petrocam and As-Sallam, sold petrol at N1,000 and N990, respectively.

As the country adjusts to this new normal, industry watchers anticipate further fluctuations in fuel prices as Nigeria aligns its energy sector with global trends.