Victor EzejaThe Nigerian National Petroleum Company Limited (NNPCL) has finally joined other oil marketers in raising the price of Premium Motors Spirit (PMS), also known as petrol.
With effect from 2 April 2025, the national oil company increased the prices of petrol to N925 per litre at its Lagos filling stations and N950 per litre in Abuja.
The new price reflects an increase of N65 from the previous price of N860 per litre in Lagos, and N70 more than the N880 previously sold in the North.
Last week MRS and other independent fuel marketers raised their petrol prices to between N930 and N970 per litre in Lagos and N960 and above in northern Nigeria.
This comes after Dangote Refinery announced the suspension of sales of refined petroleum products in naira, on Wednesday, 19 March.
The 650,000 barrels per day capacity refinery lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US dollars.
It said: “Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”
Experts had predicted that the development would lead to a hike in the price of petroleum products in the country, as the downstream market was now exposed to foreign exchange crisis, forcing marketers to source for dollars to buy the product either from Dangote Refinery or import.
READ ALSO: Why Dangote Refinery Is Right In Suspending Petroleum Products Sales In Naira – Expert
Immediately after the announcement, the cost of loading petrol at private depots in Lagos jumped to about N900/litre against about N850/litre before the announcement.
Dangote Refinery was said to have stopped petroleum products in naira following alleged failure of NNPCL to supply it crude oil under the naira-for-crude deal. The deal which started in October 2024, officially ended on 31 March 2025. NNPCL said there is ongoing talks on continuing the deal, however, there are indications that there has been no meaningful outcome.
The new NNPCL petrol price also came at a time the national oil company got a new leadership. President Bola Tinubu on Wednesday, appointed Mr. Bayo Ojulari to replace Mele Kyari as Group Chief Executive Officer. The president also reshuffled the NNPCL board, appointing Engr Musa Kida, as chairman.
With rise in price of petrol, there are concerns that it would further affect the cost of things, including transportation and prices of commodities in the market, thereby affecting households and businesses across the country.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
