Petrol prices at private petroleum depots in Lagos and other major fuel distribution centres have surged to as high as ₦800 per litre, raising fears of an imminent rise in pump prices across the country.
Market checks on Friday revealed that the average ex-depot cost of Premium Motor Spirit (PMS) climbed sharply within two days, putting additional pressure on fuel marketers already grappling with high operating costs and foreign exchange volatility.
Figures from petroleumprice.ng show that while the Dangote depot maintained relatively stable pricing selling petrol at ₦703 per litre on Friday, slightly above ₦702.50 recorded earlier in the week, other depots implemented steeper increases.
Eterna and Integrated depots raised their prices to ₦800 per litre, up from about ₦726 earlier in the week. Shellplux and AIPEC also reflected similar adjustments, marking an increase of roughly ₦74 per litre within 48 hours.
Other operators, including Aiteo and Lister, sold petrol between ₦780 and ₦790 per litre, compared to the ₦750–₦760 range recorded days earlier. In Warri, a key petroleum logistics hub, depot prices climbed even higher, with some suppliers selling PMS at up to ₦805 per litre.
Industry sources said the Warri market reacted faster due to tighter supply conditions and rising transportation costs, as marketers moved to secure volumes ahead of a possible fuel shortage.
The latest price surge comes weeks after Dangote Petroleum Refinery cut its ex-depot petrol price from ₦828 to ₦699 per litre in December, a move that helped moderate fuel costs nationwide. However, the refinery’s ongoing upgrade, which has temporarily affected petrol output, has altered supply dynamics.
Speaking on the development, the Chief Executive Officer of petroleumprice.ng, Jeremiah Olatide, said the increase reflects efforts by fuel importers to recover losses incurred during December’s aggressive price cuts.
According to him, many importers were forced to sell below their landing costs after Dangote Refinery reduced prices, resulting in significant financial strain.
He added that concerns over possible supply constraints in January have prompted some depot owners to adjust prices upward and hold back stock in anticipation of higher margins.
“Some operators are deliberately keeping products in storage, waiting for a supply disruption that would allow them to sell above landing cost,” Olatide explained, noting that the strategy may be short-lived if domestic supply improves.
He also warned that Dangote Refinery could respond with fresh price cuts once operations stabilise, potentially triggering renewed competition in the market.
Meanwhile, rising crude oil prices and currency weakness are adding to the pressure. Brent crude closed at $60.20 per barrel on Friday, while the naira weakened at the parallel market to ₦1,495 per dollar, compared to ₦1,475 earlier in the week.
Market analysts note that depot price increases typically signal higher pump prices at filling stations. If the current trend persists, petrol could soon sell above ₦700 per litre in several cities.
Since the deregulation of Nigeria’s downstream petroleum sector, fuel prices have been driven by market forces such as global oil prices, exchange rates, logistics costs, and supply availability. Although local refining has raised expectations of price stability, recent developments highlight the sector’s vulnerability to supply disruptions.
