Petrol Prices Surge Nationwide: Nigeria Faces New Challenges Amid Rising Costs

Weekend Price Hikes Rock Nigerian Fuel Market

Here's the scoop: Private oil depots across Nigeria have jacked up the price of Premium Motor Spirit (PMS), better known as petrol, to a staggering ₦900 per litre over the weekend. This price hike isn’t just a blip—it’s a reflection of the rising costs of crude oil and other global market factors that are affecting the entire refining and distribution chain. Let me break it down for you.

Key Players Feeling the Heat

According to Naija News, major oil marketers such as Rainoil, Prudent, A.Y.M Shafa, and Mainland have all raised their depot prices to the new ₦900 per litre mark. This isn’t just a number on a board—it’s a signal that the cost of petrol is about to skyrocket at your local filling stations. When this fuel hits the pumps, you can expect a significant bump in what you pay at the gas station.

And here’s the kicker: the price of crude oil, the raw material that gets turned into petrol, has jumped from $70 per barrel to $75 per barrel. This might not sound like much, but for refineries like the $650,000-barrel-per-day Dangote refinery, it’s a big deal. The increase in crude oil prices is hitting them hard, driving up operational costs and forcing them to adjust prices accordingly.

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International Market Pressures Mount

Let’s talk about the Dangote refinery for a moment. Over the weekend, it didn’t load any trucks under the Naira-for-Crude program. Instead, it kept lifting crude oil via ships, which are charged in dollars. This pricing strategy is all about covering the rising operational costs, especially since a large portion of the crude oil processed by the refinery comes from the international market, where transactions are in dollars.

This situation is putting a lot of pressure on other oil marketers too. Companies like MRS and Ardova are now sourcing their supplies in dollars, which is inevitably driving up the pump prices. As of now, independent retail outlets in Lagos and other parts of Nigeria are selling petrol at anywhere between ₦930 and ₦950 per litre. That’s a heavy burden for consumers.

Government Policies Under Scrutiny

According to Vanguard, if the federal government can’t iron out the issues that are blocking the Naira-for-Crude policy, petrol prices are only going to keep climbing. It’s a tough balancing act, and the government has a lot on its plate. Meanwhile, the Major Energies Association of Nigeria (MEMAN) has reported that the landing cost of imported petrol has gone up by ₦88 per litre in just one week. That’s a jump from ₦797 per litre last week to ₦885 per litre this week.

MEMAN’s daily energy bulletin, released on March 26, 2025, highlighted the instability in the market. The association noted, “As the market stabilizes, challenges will arise, and resistance from those who are used to price control is inevitable. However, with strong regulation, industry collaboration, and public transparency, Nigeria can fully realize the benefits of this transformation.”

Looking Ahead: A Brighter Future?

Despite the current challenges, MEMAN remains optimistic. The association believes that a properly functioning, deregulated market could attract more investment, improve operational efficiency, and create a more competitive environment that benefits both businesses and consumers. It’s a long road ahead, but with the right moves, Nigeria could see a more stable and prosperous energy sector in the near future.

So, as we move forward, keep your eyes peeled for further developments in this space. The price of petrol isn’t just about numbers—it’s about the future of energy in Nigeria.

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