Nigerians may soon face a further increase in fuel costs, with petrol prices projected to reach N930 per litre amid ongoing negotiations between the Nigerian National Petroleum Company (NNPC) Limited and local refiners over the naira-for-crude sales arrangement.
As of Monday afternoon, the ex-depot price of petrol had increased to an average of N870 per litre, reflecting a N20 increase in just one week.
Key petroleum players, including Pinnacle, AIPEC, Rainoil Lagos, and WOSBAB, were among those adjusting their prices to align with market trends. Industry experts and petroleum marketers predict that this upward trend will persist, pushing the pump price of petrol across the country to at least N930 per litre.
According to Jide Pratt, COO of AIONA, some retailers are currently selling petrol at N880 per litre, depending on whether they are dealing with older stock. However, he noted that an additional N25 could be added to current prices, further escalating fuel costs.
Zarma Mustapha, Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that fuel prices will vary by region due to logistical costs. He cited Abuja as an example, where the transportation cost per litre is approximately N45. If petrol is loaded at N870, it would arrive in Abuja at N915, with an additional N15 to N20 margin, bringing the final price closer to N930 per litre.
The NNPC has been in discussions with Dangote Refinery regarding an extension of the naira-for-crude sales arrangement, which is set to expire this month. Under this program, NNPC has supplied nearly 40 million litres of crude oil to Dangote Refinery in exchange for naira since October 2024. In return, the refinery has been selling petrol and diesel in the local market using the same currency.
Sources indicate that the initiative has played a crucial role in stabilizing fuel prices, controlling inflation, and supporting the naira. However, as negotiations continue, concerns are growing over the potential end of the arrangement and its impact on fuel affordability.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), has urged the government to reconsider halting the naira-for-crude initiative. “We believe it is too early to discontinue this program,” he stated. “We recommend extending it for at least another six months to assess its full impact on the economy and fuel pricing.”
He also called on local refiners to approach business operations with a sense of national responsibility and ensure compliance with regulations to maintain market stability.
With petrol prices already nearing N930 per litre, Nigerians are bracing for possible further hikes unless a sustainable fuel pricing framework is established. The outcome of the ongoing NNPC-Dangote negotiations could determine the future of fuel affordability in the country, making it a critical issue for both policymakers and consumers alike.
