In a significant development for Nigeria’s energy sector, the Dangote Petroleum Refinery has adjusted its petrol price to ₦865 per litre, up from its previously announced ₦815 per litre. This price revision follows the suspension of the crude-for-Naira supply deal between Dangote Refinery and the Nigerian National Petroleum Company (NNPC). Crude Supply Suspension Triggers Price Hike The price increase comes on the heels of Dangote’s decision to halt the crude oil swap arrangement that previously allowed the refinery to receive Nigerian crude in exchange for Naira payments. This deal had initially helped reduce operational costs and stabilize local petrol prices. Without access to subsidized or local crude supplies, the refinery now faces higher foreign exchange costs for crude importation, significantly impacting its cost of refining. Related News Why Nigeria’s Fuel Prices Remain Unstable Despite Global Oil Trends Oil Marketers Begin Lifting Petrol at New Rates Petrol marketers, including notable companies like MRS Oil Nigeria Plc, have already commenced loading products from the 650,000 barrels-per-day capacity Dangote Refinery, signaling that the revised pricing structure is now active in the market. Although the refinery had earlier made multiple price cuts in 2025, this latest move reflects growing pressures from both domestic and international economic factors. Global Crude Prices Drop, But Refining Costs Stay High Interestingly, this development coincides with a global dip in crude oil prices, which fell to $59 per barrel recently. Industry analysts had anticipated a decline in local petrol prices following the international crude drop. However, the reality has been quite the opposite. High logistics, dollar exchange rates, and cost of crude imports continue to drive up refining expenses. These expenses are ultimately passed on to Nigerian consumers, despite the downward trend in global oil markets. Bloomberg – Oil Prices Drop to $59 Amid Global Demand Concerns What This Means for Consumers and the Economy Fuel price fluctuations in Nigeria have a direct impact on transportation, food prices, and overall inflation. With this price hike, businesses may struggle to maintain current operating costs, and everyday Nigerians will likely experience rising costs of living once again. Experts believe that the lack of consistent local crude supply, coupled with exchange rate volatility, could continue to destabilize fuel prices unless proactive measures are taken. Also read: How Dangote Refinery is Changing Nigeria’s Oil Landscape Conclusion The decision by Dangote Refinery to raise petrol prices to ₦865 per litre illustrates the challenges posed by foreign exchange dependency and inconsistent crude supply. While Nigerians were hopeful for lower fuel prices amid falling global oil prices, the reality remains complex. As policymakers and stakeholders deliberate on long-term energy solutions, the need for sustainable crude supply frameworks and local refining incentives becomes increasingly urgent. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
The Major Energy Marketers Association of Nigeria (MEMAN) has announced a slight reduction in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol. As of December 2024, the cost has declined to ₦970 per litre, down from ₦971 per litre in November 2024. This development aligns with a drop in global crude oil prices, which fell from $74 per barrel last week to $73.77 per barrel as of yesterday. MEMAN, in its daily energy bulletin, highlighted that the latest landing cost figures are calculated using an exchange rate of ₦1,533.57 per dollar and a crude oil price of $73.91 per barrel (Brent). Volatility in Pricing Influences Despite this minor drop, MEMAN warns that international petroleum product pricing remains highly volatile due to various geopolitical and economic factors. These include ongoing events in the Middle East, shifts in China’s market dynamics, and the impact of the recent U.S. elections. The association further noted: “The foreign exchange rate is also experiencing volatility. Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day.” Retail Prices Remain Stable Although the landing cost has decreased, the retail price of petrol remains steady at ₦1,025 per litre in Lagos. According to Ehimen Joseph, Chairman of the Lagos State Chapter of MEMAN: “The price of petrol is determined by market forces under a deregulated market regime. A drop in price is possible.” Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), also emphasized that any reduction in petrol prices would take time to reflect in the market. He explained: “Fuel price reduction cannot be spontaneous. Marketers need to deplete their existing stocks before new prices are reflected. This process could take one to two months, depending on stock levels and sustainable foreign exchange rates.” Conclusion While the drop in landing costs hints at a potential reduction in retail petrol prices, market forces and foreign exchange fluctuations will determine the timing and scale of any adjustments. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
