Fuel Price Nears N1,000/Litre as Marketers, Retailers Trade Blame

The price of Premium Motor Spirit (PMS) in Nigeria has surged dangerously close to N1,000 per litre, sparking blame-shifting between petroleum product marketers and retailers over the sharp increase.

As of Monday, fuel prices at Nigerian National Petroleum Company Limited (NNPCL) retail outlets in states like Abuja, Nasarawa, and Kogi climbed from N890 to N955 per litre—a N65 increase in just 48 hours. This follows reports over the weekend that several filling stations, including Ranoil, AA Rano, Shema, Empire Energy, and Optima, had adjusted their pump prices to between N950 and N971 per litre in Abuja.

This steep hike comes amid a decline in global crude oil prices. As of the time of reporting, Brent crude had dropped to $68.70 per barrel, while West Texas Intermediate (WTI) stood at $66.24 per barrel.

Marketers, Retailers Offer Contrasting Explanations

Stakeholders in the downstream oil sector have offered conflicting reasons for the price surge.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) blamed the rising cost of the dollar and foreign exchange challenges, pointing to increased ex-depot prices by depot owners and the Dangote Refinery.

“Fuel prices went up due to demand and supply factors in a deregulated market,” said IPMAN spokesperson Chinedu Ukadike. “Depot owners and the Dangote Refinery have increased their ex-depot prices, and this is largely tied to the exchange rate. Dangote, in particular, imports most of its crude oil, which is subject to global pricing.”

According to him, as of Friday, ex-depot prices stood at:

• Dangote Refinery: N858/litre

• NIPCO: N870/litre

• Aiteo: N855/litre

• Ranoil: N865/litre

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has taken aim at Dangote Refinery’s pricing model.

“What the Dangote Refinery is doing does not reflect proper pricing,” said PETROAN National President, Billy Gillis-Harry. “We need to examine the pricing mechanisms being used to ensure fairness and transparency in the downstream sector.”

Public Impact

With pump prices approaching N1,000 per litre, Nigerians are once again bearing the brunt of economic hardship, with transportation and commodity costs expected to rise further in the coming days.