Fuel Price Nears ₦1,000/Litre as Marketers, Retailers Trade Blame

The pump price of Premium Motor Spirit (PMS) is rapidly approaching ₦1,000 per litre across Nigeria, sparking tension and blame-trading between petroleum product marketers and retailers.

On Monday, The Press confirmed that Nigerian National Petroleum Company Limited (NNPCL) outlets increased pump prices in parts of the country. In Abuja, Nasarawa, and Kogi states, the price rose from ₦890 to ₦955 per litre an increase of ₦65 within 48 hours. This follows similar hikes over the weekend by independent marketers, including Ranoil, Shema, Empire Energy, and others, who adjusted their prices to between ₦950 and ₦971 per litre.

The surge comes amid falling global crude oil prices, with Brent and West Texas Intermediate (WTI) dropping to $68.70 and $66.24 per barrel, respectively, at the time of reporting. Despite the global dip, local fuel prices continue to soar, leaving Nigerians frustrated and confused.

Industry stakeholders have pointed to multiple factors driving the increase foremost among them the volatile exchange rate, rising ex-depot prices, and the pricing structure of the Dangote Refinery.

Spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, attributed the hike to the interplay of demand and supply in the deregulated downstream sector. He explained that petrol depots and the Dangote Refinery have raised their ex-depot prices in response to dollar scarcity and crude sourcing costs.

“As of Friday, Dangote Refinery was selling at ₦858 per litre, NIPCO at ₦870, Aiteo at ₦855, and Ranoil at ₦865. The cost of the dollar is a major factor influencing these depot prices,” Ukadike said.

In contrast, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, criticised the pricing model adopted by the Dangote Refinery, describing it as non-transparent and inconsistent with industry expectations.

“We should be focusing on proper fuel pricing. What the Dangote Refinery is doing does not reflect fair market pricing,” he said.

As Nigerians grapple with these increases, questions continue to mount over the impact of deregulation, forex challenges, and the effectiveness of the new refining structure in stabilising prices. For now, the burden remains on the average citizen caught between policy shifts and market realities.