Petrol rises above N1,400/litre as crude oil climbs past $100 per barrel

Petrol prices have increased across major Nigerian cities, with retail outlets now selling Premium Motor Spirit (PMS) between N1,400 and N1,450 per litre.

Checks by Nairametrics show that as of Sunday, most filling stations in Lagos were dispensing petrol between N1,400 and N1,430 per litre, while MRS stations sold at N1,395 per litre.

In Abuja, pump prices ranged from N1,400 to N1,450 per litre.

The adjustment marks another increase in domestic fuel prices, which have risen sharply from around N830 per litre before the Middle East crisis earlier this year to over N1,300 in many parts of the country.

Crude oil rally fuels domestic price pressure

The latest price movement follows a surge in international crude oil prices, with Brent crude climbing above $100 per barrel and reaching $107 per barrel on Thursday.

• According to oilprice.com, Brent crude traded at $104.61 per barrel as of Sunday, more than 50% higher than levels recorded before the escalation of tensions in the Middle East.
• Prior to the crisis that began on February 28, crude oil traded below $69 per barrel. However, disruptions to global supply chains and concerns over reduced oil flows through the Strait of Hormuz have pushed prices significantly higher, increasing costs across global energy markets.

The rise in crude prices has translated into higher costs for domestic refiners and fuel importers, prompting fresh adjustments to petrol prices across Nigeria.

Nigerians fear N1,500 per litre petrol

The latest increase has triggered concerns among consumers, many of whom fear petrol prices could rise further in the coming days. 

Reacting on X, user @TheoAbuAgada noted that the N85 increase in Dangote Refinery’s gantry price could push pump prices to about N1,500 per litre. 

• “Dangote Petroleum Refinery has increased its PMS gantry price by N85 per litre, from N1,265 to N1,350. What this means is that from Monday we will be buying fuel at N1,500 per litre. I have never seen anything like this. This is absolute madness.” 

Another user, @Danilo___TV, lamented the growing normalisation of rising fuel costs. 

• “Petrol is now N1,430 per litre in Abuja and somehow it feels like nobody is even bothered. We have become so used to things getting worse that the fuel price heading to N1,500 per litre doesn’t shock us anymore?” 
• @azeezibrahim3 wrote: No matter what grammar someone wants to tell me, buying fuel for ₦1,500 is too much for the common man. By Monday, transport fares will go up, and companies will not increase salaries. God abeg. 
• @Sarkinijebu wrote: Even 900 naira a litre is too much ..at 1500  per litre Nigerians are spending a whooping 2 percent of their minimum wage to buy a litre of fuel and remember almost 70 percent of  Nigerians don’t even earn this 70k.  
• @oforozor wrote: Dangote is reminding Nigerians that they shudn’t mistakenly vote Tinubu into power again, imagine Tinubu met petrol price at N165 per litre but he increase it to N1500 now, there will be more suffering & pains for Nigerians if Tinubu win again, Nigerians shud reject APC everywhere 

Get up to speed

In July, Dangote Petroleum Refinery and Petrochemicals stated that its pricing model is not directly tied to daily fluctuations in international crude oil prices, explaining why retail fuel prices do not immediately decline when global oil benchmarks fall.

The refinery said crude oil is often purchased weeks or months before processing under commercial supply contracts linked primarily to monthly average pricing mechanisms.

According to the company, this procurement structure means changes in international oil prices are not instantly reflected in local fuel prices.

What you should know

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed continued volatility in petrol prices to a combination of crude oil sourcing costs, logistics expenses, transportation challenges and the country’s reliance on a limited number of refining sources.

Speaking recently, NMDPRA’s Head of Public Affairs, George Ene-Ita, said petrol pricing in Nigeria is now fully deregulated and therefore subject to market forces.

He noted that factors such as the cost of acquiring crude oil feedstock, exchange rate movements and the time lag between crude procurement and refining continue to play significant roles in determining pump prices across the country.