Petrol Price Jumps to N1,212/Litre Despite Global Crude Drop

Just when you thought your wallet was safe, the price of petrol (Premium Motor Spirit, or PMS) has jumped again. Across the country, you're now likely paying an average of N1,212 per litre, a hefty 4.7 per cent increase from the previous N1,158. And here’s the kicker: this is happening even though crude oil prices on the global market are actually falling. Brent crude dipped to $88.42 a barrel, and the OPEC Basket, which includes Nigeria’s own Bonny Light, is now at $90.28 a barrel. So, why the jump?

Well, it seems the market is feeling the massive influence of the Dangote Refinery.

Across the nation, major fuel retailers are adjusting their prices. Reports show that MRS, NNPC, and Ardova have all pushed their prices up to N1,205 per litre from N1,125. Mobil is now at N1,215, up from N1,209, and BOVAS has followed suit, reaching N1,217 from N1,210. But if you think those numbers are high, some depots are charging far, far more. We're talking about prices as high as N1,735 per litre in places like Port Harcourt.

In several depots there, fuel was selling at N1,668 to N1,735. Prudent Depot reportedly had the highest price at N1,735, with Zamson and Rain Oil not far behind.

Even in Lagos, where prices are usually a bit more stable, many major depots have hiked their rates. MRS is selling at N1,207. Pinnacle and NIPCO are at N1,203. BONO and Pivot have also increased to N1,203. The Dangote Refinery itself is quoting PMS at N1,200 per litre.

This wild price variation between depots, especially the stark difference between Lagos and Port Harcourt, shows just how much logistics, location, and supply issues are still affecting the cost of fuel. Marketers buying from those higher-priced depots in Port Harcourt will naturally have to charge more at the pump.

According to energy analysts who wish to remain anonymous, the global oil market isn't necessarily high enough right now to justify these pump prices. The real game-changer, they say, is the sheer size and dominance of the Dangote Petroleum Refinery. With a massive 700,000 barrels per day capacity, it's believed to control about 80 per cent of the domestic supply. This means its actions set the pace for everyone else in the market. The Dangote Refinery itself recently raised its gantry price by N15 per litre.

An operator from the Major Energies Marketers Association of Nigeria, also speaking anonymously, explained that these price increases are sometimes about recovering losses. He mentioned that marketers have faced significant financial hits over the past 18 months due to price volatility. When prices fall, they incur losses throughout the supply chain. Then, when prices rise, they gradually adjust their pump prices to make back some of that money. It’s a constant balancing act in a market that’s still finding its footing.

It’s a tough time for Nigerians, who are already grappling with rising living costs. The fluctuating fuel prices directly impact transportation, food costs, and almost every aspect of daily life. For many, this latest hike means even more difficult choices ahead.