The Nigerian National Petroleum Company Limited (NNPC) has announced an increase in petrol prices at its retail outlets in Lagos and Abuja. The new prices, which took effect on January 27, 2025, see a hike in the cost of petrol in Lagos from N925 per litre to N960 per litre, while in Abuja, the price rises from N965 per litre to N990 per litre. This adjustment comes as a response to fluctuating crude oil prices on the international market.
The price increase by NNPC is slightly higher than the one implemented by Dangote Refinery, which set its petrol price at N955 per litre. This pricing variation is indicative of the ongoing market dynamics and reflects the impact of global crude oil prices on the domestic petroleum sector. According to NNPC, the price hike is a result of the continued adjustments in crude oil prices, which have experienced some decline recently.
Despite the decrease in international crude oil prices, the price increase at NNPC stations marks the latest development in Nigeria’s downstream petroleum sector, which has been undergoing significant changes. The introduction of the Dangote Refinery into the market has contributed to shifting supply dynamics, with many expecting it to reshape the country’s fuel supply in the near future.
“Some filling stations have already adjusted their prices to reflect the new rates,” a source from the NNPC stated. “The price increase is a reflection of the reality of the market and is in line with the deregulation policy, which allows prices to be determined by market forces.” The policy, which aims to remove government control over fuel pricing, allows for price fluctuations based on supply and demand conditions.
While Dangote Refinery’s price increase to N955 per litre is less than that of NNPC, it is still a significant shift. Petrol prices at Dangote’s refinery increased from N899 per litre to N955 at its loading bay. As a result of these changes, retail prices have surged across Nigeria, with some filling stations now selling petrol for as much as N1,030 per litre, and others seeing prices rise to between N1,050 and N1,150 per litre.
The latest increase reflects the broader trends in the sector, where petrol prices have been climbing steadily. Some filling stations have already adjusted their prices from N965 per litre to N990 per litre, a move that mirrors the adjustments made by major marketers in the country.
