The Nigerian National Petroleum Company Limited (NNPCL) has raised the price of premium motor spirit (PMS), commonly known as petrol, to N1,025 per liter in Lagos. This increase marks the second hike in less than a month, with prices previously moving from N855 to N998 just three weeks ago. The NNPCL’s decision follows other adjustments across the country, as petrol stations in Abuja, Kano, and other areas have also increased prices.
Fuel stations operated by NNPCL and other major marketers in Lagos have now updated their prices to reflect the rising costs. At an NNPCL station along Acme Road in Ikeja, one observer reported that the station initially halted sales in the morning before covering up the pump price. Meanwhile, another station along the Lagos-Abeokuta expressway displayed the new price of N1,025 per liter.
In response to the changes, several major fuel marketers have also raised their prices. Mobil stations are now selling petrol at N1,070 per liter, and Bovas stations are charging N1,090, reflecting the impact of full deregulation, where fuel prices are set by market forces. A spokesperson for one of the major marketers explained, “NNPCL must have adjusted their prices after realizing they were below the market rate and needed to make an upward shift.”
The increase has spurred discussions on the local supply of fuel. Aliko Dangote, President of Dangote Group, recently addressed the matter, suggesting his new refinery could fulfill the country’s petrol needs. “Our daily consumption is estimated at around 30-32 million liters, and we’re prepared to start local production next week,” Dangote stated after a meeting with President Bola Ahmed Tinubu and other key stakeholders at the Presidential Villa in Abuja. “We have 500 million liters in storage tanks, enough to sustain the country for more than 12 days even without additional imports.”
This statement, however, contrasts with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) estimate that daily consumption is between 45 and 50 million liters. NMDPRA’s Chief Executive, Farouk Ahmed, recently noted that fuel use typically rises during the fourth quarter due to increased activity around the holiday season. “Nigeria’s current volume consumed is between 45 and 50 million liters daily, including buffer stock,” Ahmed stated during the Africa Downstream Energy Week in Lagos.
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At the meeting, Dangote expressed confidence in his refinery’s capacity to meet domestic demand, saying, “We are more than ready to supply the market with 30 million liters daily. I expect that NNPCL and other marketers will stop importing fuel and start utilizing our supply.” He further explained the cost of maintaining high storage levels, saying, “It costs me money to store half a billion liters in our tanks. If marketers start collecting from us, we would see shorter queues at filling stations.”
Despite Dangote’s assurances, fuel queues persist at stations across the country. Addressing this, he clarified that his refinery is focused on production, not retail. “We are producers, not retailers,” he said. “It’s up to retailers to collect from us and distribute to the public.”
Finance Minister Wale Edun also provided insights following the meeting, revealing plans for implementing the sale of crude oil in naira, with key regulators such as NIMASA, NNPC, and the Nigerian Navy involved. Edun noted, “The implementation committee, along with various stakeholders, is working diligently to ensure the successful execution of this initiative.”