Petrol Prices Surge to N1,000 Despite Cheaper Crude and Stronger Naira: What Nigerians Need to Know
Nigerians are facing a new shock at the fuel pump as petrol prices jump from around N865 per litre to nearly N1,000, leaving consumers bewildered. The spike comes despite two key factors that usually influence prices, crude oil and the naira exchange rate, being more favorable in recent months. The naira, which exchanged at about N1,700 to the dollar earlier this year, now trades at roughly N1,477, while Brent crude has fallen from over $80 per barrel to near $60.
Data from energy intelligence firm Kpler shows that crude prices dropped sharply last week, with Brent dipping below $60 per barrel for the first time since May. The decline followed threats of higher tariffs on Chinese goods by US President Donald Trump, highlighting the vulnerability of global oil markets to geopolitical tensions. Despite these indicators that would typically lower fuel costs, Nigerians saw a sudden rise in petrol prices across major cities.
Industry insiders point to local supply disruptions as a key driver. The Independent Petroleum Marketers Association of Nigeria (IPMAN) blamed depot operators for hiking prices after the Dangote refinery temporarily paused loading petrol to marketers. IPMAN President Abubakar Shettima said, “Depot operators are the only ones selling the product now. Once Dangote resumes, prices should come down.” Ex-depot prices jumped from an average of N830 to nearly N900 per litre, prompting filling stations in Lagos, Ogun, and Abuja to adjust pump prices accordingly.
The Dangote refinery, which has recently intensified petrol loading, confirmed that distribution to marketers resumed on Wednesday, though retail prices remain high. Industry sources attributed part of the disruption to maintenance work and the temporary layoff of engineers, while analysts warned that Nigeria’s limited domestic refining capacity makes the downstream market highly sensitive to even minor operational hitches. NNPC retail outlets have raised prices to N928 per litre, citing the increase in depot prices.
Market analysts say the current fuel price paradox highlights deeper structural issues in Nigeria’s downstream sector. While global crude prices and a stronger naira should push costs down, domestic factors—such as limited refinery output, speculative pricing by depot operators, and logistical bottlenecks—continue to dictate pump prices. For now, motorists and households face rising fuel costs, underscoring the fragility of Nigeria’s petroleum supply chain and the urgent need for a more resilient system.
source: punch