Petrol Prices Surge Across Nigeria: What's Driving The Hike?

Scope 03 Apr 2025

MRS Filling Stations Implements New Pricing Structure Amid Rising Fuel Costs

Hey there, let’s dive into what’s happening on the fuel front in Nigeria. MRS Filling Station has just announced a new pricing structure, and the numbers are catching people’s attention. Starting March 28, 2025, petrol prices at MRS stations are now set at ₦930 per litre in Lagos, and for folks up north, it's ₦960 per litre. This move comes right after the Dangote refinery paused selling petroleum products in naira, which has added another layer of complexity to the situation.

This price hike means that Lagos drivers are paying ₦70 more per litre than they were before, when the price was ₦860. In other South-West states, the previous price was ₦870, and now it's up to ₦930. Meanwhile, northern regions have seen an increase of ₦80, moving from ₦880 to ₦960 per litre. The changes are significant, and drivers across the country are feeling the pinch.

Industry Reaction to the Price Increase

Now, here’s the thing: the price hike at MRS stations isn’t just affecting them—it’s creating a ripple effect across the market. Other filling stations are following suit, which means consumers might see similar price tags at their local stations. For example, NIPCO, one of the major players in the market, has already matched the new pricing trend. In Magboro, Ogun State, they’ve started selling petrol at ₦930 per litre, reflecting the changes set by MRS.

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MRS Oil & Gas has also revealed that petrol prices will vary depending on where you are in the country. Lagos remains the cheapest at ₦930 per litre, while the South-West and Kwara regions will see petrol sold for ₦940 per litre. Moving further south, states like Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, and Enugu will now pay ₦960 per litre. Up north, the pricing gets a bit more complicated: Abuja, Kaduna, Benue, Kogi, Niger, Sokoto, Kebbi, and Nasarawa will pay ₦950 per litre, while other northern states, including Zamfara, Kano, Jos, Bauchi, Taraba, Adamawa, Borno, Katsina, Jigawa, Gombe, and Yobe, will see prices at ₦960 per litre.

Why Are Prices Different Across Regions?

Regional pricing differences are tied to the Free Carrier Agreement (FCA) price, which determines how much marketers pay for petrol before it hits the retail stations. Lagos has the lowest FCA price at ₦905 per litre, while northern states such as Borno, Taraba, Adamawa, and Yobe experience FCA prices closer to ₦888 per litre. Despite these differences, independent marketers are still grappling with challenges, especially with foreign exchange rates and rising distribution costs.

These challenges have led to fuel shortages in some areas, making it even harder for consumers to get their hands on petrol. The situation has been exacerbated by the suspension of the naira-for-crude agreement between the Dangote refinery and the Nigerian National Petroleum Corporation Limited (NNPCL). This agreement fell apart due to a mismatch between the volume of crude allocated to foreign creditors and actual sales, leaving the Dangote refinery unable to keep up with the deal.

What’s Causing the Suspension of the Naira-for-Crude Agreement?

Insiders have shared some insights on what went wrong. The NNPCL had to allocate large volumes of crude to foreign creditors to settle outstanding loans, which threw the stability of the naira-for-crude initiative into chaos. As a result, private depot owners saw an opportunity to hike their prices, further driving up the cost of fuel. This isn’t just about numbers on a screen—it’s affecting everyday Nigerians who rely on petrol to get around.

The ripple effects of these price hikes are expected to trickle down to transportation costs, which will likely drive up the prices of goods and services across the country. This is bad news for many Nigerians who are already dealing with a high cost of living. However, there’s a glimmer of hope on the horizon. Industry experts believe that petrol prices could stabilize once the Dangote refinery starts selling fuel in naira again, assuming they secure crude oil from the NNPC.

In the meantime, consumers are left to navigate these changes and adjust their budgets accordingly. It’s a tough situation, but staying informed is the first step toward finding solutions. Keep an eye on developments in the coming weeks to see how this story unfolds.