Petrol prices have surged past N900 per litre in parts of Nigeria, even as global crude oil prices decline. Several filling stations in Lagos and Ogun States adjusted their pump prices upwards, sparking public concern over the mismatch between international oil trends and local fuel costs.
On Monday, retail outlets owned by the Nigerian National Petroleum Company Limited (NNPC) increased prices to N900/litre in some areas, while others went even higher. In Ogun State’s Mowe area, AP (a partner of the Dangote Refinery) sold petrol for N925 per litre, while Heyden offered it at N910.
Crude oil prices, however, have dropped from nearly $69 to $66 per barrel since Sunday. Despite this, filling stations across Lagos displayed new, higher prices, indicating a revised pricing regime not aligned with the global market trend or any major shift in the naira-dollar exchange rate.
Other marketers also adjusted their rates upwards. TotalEnergies sold at N910, Asharami at N905, and Enyo at N915. NIPCO and Fatgbems remained below the N900 mark, selling at N890 and N892 respectively.
Dangote Refinery Raises Depot Prices
The Dangote Refinery recently raised its ex-depot price for petrol from N820 to N850 per litre, though no official explanation was provided. According to Petroleumprice.ng, the average depot price from major suppliers now stands at N855 per litre. Prices vary slightly across depots: Aiteo (N850), Sobaz (N870), NIPCO Lagos (N852), Northwest (N860), and Pinnacle (N851.5), among others.
Global Oil Market Trends
While domestic petrol prices rose, international crude prices saw a notable decline. Brent crude futures dropped 4.4% last week, settling at $66.59 a barrel, while U.S. West Texas Intermediate (WTI) ended 5.1% lower at $63.88. Market analysts attribute this drop to geopolitical uncertainties and ongoing talks between the U.S. and Russia regarding the Ukraine conflict.
Marketers Predict Price Adjustment
Despite the current spike, industry insiders suggest prices may come down soon. Joseph Obele, National Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), stated that recent price increases were a delayed response to a previous crude oil hike.
He explained that crude prices rose about 10 days ago, prompting refineries to raise prices. However, as global prices have now declined, pump prices are expected to follow suit within the week.
“By Tuesday or so, we hope to see a downward review of petrol prices,” Obele said.
Obele also noted that a temporary halt in petrol loading at the Dangote Refinery contributed to the recent surge in prices — a claim the refinery has denied, stating it continues to supply 40 million litres of petrol daily.
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