Petrol Prices Surge to ₦900/Litre Despite Crude Oil Drop; Marketers Predict Imminent Decline

Petrol prices across parts of Nigeria have surged past ₦900 per litre despite a recent decline in global crude oil prices, sparking public concern and debate. Filling stations owned by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote refinery partners were among those selling at the new rates in Lagos and Ogun states. This comes even as crude oil prices fell from nearly $69 per barrel to around $66 per barrel over the weekend.

On Monday, various retail outlets displayed new price tags along the Lagos-Ibadan Expressway. Ardova and Heyden stations sold at ₦910 per litre, AP in Mowe priced at ₦925, while TotalEnergies and Asharami retailed at ₦910 and ₦905 respectively. Other marketers such as NIPCO and Fatgbems kept prices slightly below ₦900, at ₦890 and ₦892 per litre. Enyo sold at ₦915 per litre. The adjustments follow Dangote refinery’s recent hike in ex-depot prices from ₦820 to ₦850 per litre without an official explanation.

Data from Petroleumprice.ng showed an average depot price of ₦855 per litre among key suppliers, with some charging as high as ₦870. These price increases come against the backdrop of a 4.4% drop in Brent crude prices and a 5.1% fall in West Texas Intermediate crude, marking their steepest weekly losses since late June. Analysts attribute the dip to expectations of a potential peace agreement between Russia and the United States over the Ukraine conflict.

Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) spokesperson Joseph Obele explained that prices initially rose due to a spike in crude oil costs about 10 days ago. However, with crude prices now easing, Obele expressed optimism that pump prices could be reviewed downward as early as this week. He cited market reactions to geopolitical tensions involving US President Donald Trump and Russian President Vladimir Putin as key triggers for the recent fluctuations.

Obele also claimed that an eight-day suspension of petrol loading by the Dangote refinery contributed to the temporary hike, though the refinery denied halting supplies, insisting it delivers 40 million litres daily. With crude prices now trending lower and supply constraints reportedly resolved, marketers anticipate that pump prices could soon fall, offering some relief to consumers already grappling with high transportation and living costs.

Source: Punch