The Nigerian National Petroleum Company Limited (NNPCL) has raised the price of Premium Motor Spirit (PMS), commonly known as petrol, to N925 per litre at its filling stations in Lagos and N950 per litre in Abuja. This price adjustment comes just hours after a major administrative shake-up within the company.
Previously, petrol was sold at N880 per litre, marking a notable increase. In Lagos, NNPCL stations in Fadeyi, Ago Palace Way, and Second Rainbow revised their prices to N925 per litre from N860 per litre as of Wednesday. Similarly, NNPC retail outlets in Federal Housing, Kubwa, increased prices by N70 per litre.
Investigations by The Guardian revealed that some NNPC filling stations in Ikotun have adjusted prices to N925 per litre, while privately-owned fuel stations, such as God’s Decision, are selling petrol at N1,000 per litre.
NNPC stations along Lagos-Ibadan Expressway and Ikorodu Road initially displayed N930 per litre before settling at N925 per litre. This latest price hike reflects ongoing shifts in Nigeria’s deregulated fuel market, influenced by global crude oil prices, supply chain costs, and market competition.
Dollar-Denominated Transactions & Market Dynamics
On March 19, NNPCL clarified that its decision to halt sales in naira was aimed at aligning sales revenue with crude oil purchase obligations, which are predominantly denominated in U.S. dollars.
This fuel price increase follows the recent appointment of Mr. Bayo Ojulari as the new NNPCL Group CEO, replacing Mele Kyari. President Bola Tinubu also made significant changes to the NNPCL board as part of broader industry reforms.
In December 2024, NNPC had previously sold petrol at N925 per litre, before implementing a series of adjustments leading up to this latest revision.
Key Locations Affected
- Lagos: Fadeyi, Ago Palace Way, Second Rainbow, Ikotun, Lagos-Ibadan Expressway, Ikorodu Road
- Abuja: Federal Housing, Kubwa
- Private Stations: Prices as high as N1,000 per litre reported in some areas
Market Implications
The rising cost of petrol is expected to have far-reaching effects on transportation, goods, and services, influencing inflation trends across Nigeria.