Written by SpringNewsNG Media Limited, March 25, 2025

Nigerians may soon be paying as much as N930 per litre for petrol as discussions continue between the federal government, represented by the Nigerian National Petroleum Company (NNPC) Limited, and local petroleum refiners on the naira-for-crude sales arrangement.

An analysis by BusinessDay revealed that the ex-depot price of petrol stood at an average of N870 per litre as of Monday noon, reflecting a more than N20 increase in just one week. Data showed that key players such as Pinnacle, AIPEC, Rainoil Lagos, and WOSBAB adjusted their prices to N870 per litre by Monday noon.

Following this trend, petroleum marketers have indicated that pump prices could rise to at least N930 per litre across Nigeria.

“For Premium Motor Spirit (PMS), the price has increased by about N10 to N20. Some vendors sell at N880 for old stock, but with a potential N25 increment, we are looking at a higher pump price,” said Jide Pratt, Chief Operating Officer of AIONA.

Zarma Mustapha, Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that regional price variations are inevitable due to additional transportation and operational costs.

“You have other costs to consider, depending on your location. For instance, in Abuja, the transportation cost per litre is about N45. If you load at N870, adding N45 brings it to N915. Then, factoring in margins of N15 to N20, you arrive at a final price of about N930,” Mustapha said.

The NNPC is currently negotiating with Dangote Refinery to extend the naira-for-crude arrangement, which is set to expire this month. Since October 2024, the programme has facilitated the sale of nearly 40 million litres of crude to Dangote in naira, allowing the refinery to supply petrol and diesel to the local market in the same currency.

Industry sources indicate that the arrangement has contributed to lower petrol prices, curbed inflation, and stabilized the naira.

“Our position remains that the government should extend the programme for another six months to fully assess its impact,” said Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

He also urged local refiners to conduct business with a sense of national responsibility, adhering to regulations and prioritizing the country’s economic stability.

“We must all work together to salvage the economy. At the end of the day, national interest should come first,” he emphasized.

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