The price of Premium Motor Spirit (PMS), commonly known as petrol, is set to rise again as the landing cost of imported fuel surges and the Dangote refinery halts its naira-for-crude arrangement with the Federal Government.
Recent data from the Major Energies Marketers Association of Nigeria (MEMAN) reveals that the landing cost of imported petrol soared by 88 per litre in just one week, climbing from 797 to ₦885 per litre. This sharp increase is expected to impact pump prices nationwide.
Meanwhile, the Dangote refinery’s ex-depot price remains at 815 per litre, offering a 70 per litre cushion compared to the rising landing costs. However, industry analysts warn that once additional charges and retailer margins are factored in, the price of imported petrol could hit ₦1,000 per litre at filling stations.
Depot Owners Cash In on Supply Shock
The suspension of the naira-for-crude policy has triggered a spike in loading costs at private depots, allowing depot owners to exploit the situation for higher profits. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that the market is feeling the pressure.
“The demand for PMS has surged since Dangote announced the suspension of naira payments,” Ukadike said. “As a result, depot owners are increasing prices to maximize profits.”
With negotiations dragging on and import dependency rising, consumers may have to brace for a fresh wave of petrol price hikes in the coming days.
About the Author
