The Nigerian National Petroleum Company Limited (NNPCL) has adjusted the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦915 per litre in Lagos and Abuja. This new rate reflects a 6.4% increase from the ₦860 per litre briefly offered by some NNPC stations in March 2025, following a temporary decline in supply costs from a previous high of ₦945.
On Monday, June 23, 2025, USAfricaonline.com confirmed that several NNPC filling stations in Lagos had already updated their fuel meters to reflect the revised pricing structure. Abuja stations have also implemented the change, increasing from ₦865 to the new ₦915 mark.
This adjustment is consistent with Nigeria’s ongoing deregulation of the downstream petroleum sector, which began in mid-2023. Under the deregulated regime, fuel prices are now largely determined by global crude oil prices and fluctuations in the exchange rate of the naira.
The current hike follows an increase in depot prices by Dangote Refinery, prompting NNPCL to raise its pump price to remain competitive and curb financial losses. Contributing factors include rising international crude prices and the continued depreciation of the naira, both of which have raised the cost of importing fuel.
Expert Insight
In a recent analysis, Jide Pratt noted that Iran’s strategic importance as a major oil producer makes it a significant driver of global oil prices. He explained that following recent bombing activity in the region, Brent crude briefly spiked to $78, before settling near $73 per barrel.
“If tensions escalate further, oil prices could climb even higher, pushing up the cost of refined products like petrol both in Nigeria and globally,” Pratt warned.
Outlook for Fuel Prices
Analysts suggest that petrol prices in Nigeria are unlikely to stabilize unless three key conditions are met:
- A strengthening of the naira
- Steady global crude oil supply
- Significant improvements in local refining capacity
While Dangote Refinery currently plays a dominant role in fuel distribution, expanding domestic refining operations and encouraging competition could, over time, ease pump prices for consumers.
What You Should Know
- In recent months, some NNPC stations temporarily reduced petrol prices from ₦945 to ₦860 per litre, in response to short-term drops in supply costs driven by improved domestic supply and slightly lower global oil prices.
- Following U.S.-led airstrikes on Iranian nuclear facilities, Iran’s parliament approved a measure to close the Strait of Hormuz, a vital shipping route for global oil. If implemented, oil prices could spike from below $80 to as high as $150 per barrel, according to Nairametrics.
- MRS Oil Nigeria Plc, a key distributor of Dangote Refinery’s products, also raised its pump price from ₦885 to ₦925 per litre in Lagos, effective Saturday, June 21, 2025. This aligns with broader market reactions to escalating tensions in the Middle East and their impact on oil prices.
