The pump prices of Premium Motor Spirit (PMS), commonly known as petrol, have surged to between N1,050 and N1,150 per litre across Nigeria. This increase follows a significant price hike by the Dangote Petroleum Refinery and various depot owners, driven by rising crude oil costs.
On January 17, 2025, the Dangote refinery announced that it would raise its PMS price from N899 to N955 per litre for bulk purchases. This adjustment took effect immediately and has impacted the downstream petroleum sector. Private depots have responded with their own price increases, with some charging as much as N1,000 per litre in Calabar and N970 in Lagos. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that retail prices could soon reach N1,100 in Lagos and N1,150 in the Federal Capital Territory.
Industry experts attribute the price surge to several factors, chief among them the rising cost of crude oil, which recently reached $80 per barrel. Festus Osifo, National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, indicated that without improvements in the exchange rate, petrol prices are likely to continue rising. Additionally, logistics costs are expected to add approximately N50 to the final retail price, further escalating costs for consumers.
Oil marketers have expressed concerns about the volatility of prices in the deregulated market, emphasizing that fluctuations will continue based on supply and demand dynamics. They have also called for improved infrastructure within the sector to alleviate the impact of such price increases on consumers. As the situation develops, Nigerians are bracing for potential further hikes in fuel prices, which could have widespread implications for the economy, particularly in transportation and goods pricing.
