Petrol Prices Surge Past N1,000/Litre as Fuel Queues Return

Oil marketers have defended the recent surge in petrol prices, stating that filling stations should not be blamed as long queues resurfaced at various locations on Saturday.

Many filling stations in Lagos, Ogun, Abuja, and Port Harcourt remained closed, with dealers monitoring price fluctuations before making sales. Reports indicate that petrol prices have risen to between N1,050 and N1,150 per litre, following increases by the Dangote Petroleum Refinery and private depot owners.

Industry sources confirmed that petrol prices are expected to continue rising due to the increasing cost of crude oil, the main component in fuel production. On Friday, the Dangote refinery raised its PMS price from N899/litre to N955/litre at its loading gantry, forcing retail stations to hike pump prices. Many stations shut down operations, waiting to assess market reactions before making adjustments.

A major oil marketer, speaking anonymously, emphasized that the increase was not due to scarcity but rather the need for dealers to avoid financial losses. “There is no shortage of product. Dealers are just being cautious, considering the volatile pricing situation,” he explained.

Despite many stations remaining closed, those still selling fuel in Lagos charged over N1,000 per litre. Some, like MRS stations in Alapere and Ojodu Berger, maintained the earlier agreed price of N935 per litre, resulting in massive queues.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also dismissed claims that filling stations are responsible for the price increase. PETROAN attributed the hike to rising global crude oil prices, with Brent crude at $80.85 per barrel, WTI oil at $78.82, and the OPEC basket at $81.72. Prices have surged in response to new U.S. sanctions on Russian oil, causing further disruptions in the global supply chain.

PETROAN President Dr. Billy Gillis-Harry pointed to the Petroleum Industry Act (PIA), Section 205, which allows market forces to determine petrol prices. He stressed that neither the Nigerian government nor the Nigerian National Petroleum Company Limited (NNPC) dictates pricing anymore. As a result, refinery operators in Nigeria adjust their rates based on fluctuations in crude oil prices.

He warned that the continued increase in crude prices would directly impact domestic petrol costs. “It’s becoming unsustainable. Even retail outlet owners are struggling with these constant price changes,” he said. “We buy at higher rates and must sell accordingly—we cannot sell at a loss.”

To address the issue, PETROAN urged the privatisation of government-owned refineries and the creation of a competitive downstream sector. The association believes this move would reduce government financial burdens, increase efficiency, and stabilize the market, ultimately benefiting Nigerian consumers.

PETROAN also called for better business conditions for retail outlet owners, including access to affordable financing and improved infrastructure, to lower operational costs and keep petrol prices reasonable.

At the Petroleum Industry Stakeholders’ Forum held in Abuja, PETROAN reiterated its commitment to fostering a sustainable oil sector. In a position paper, the association highlighted significant developments in Nigeria’s downstream industry over the past year and outlined recommendations, including:

• Privatising Nigerian-owned refineries
• Enhancing monitoring and evaluation frameworks
• Investing in infrastructure
• Addressing cross-border smuggling
• Prioritising local refineries’ access to crude oil

Gillis-Harry praised President Bola Tinubu for his efforts in deregulating the petroleum industry and implementing policies aimed at unlocking the sector’s full potential. PETROAN pledged to continue collaborating with key stakeholders to drive sustainable growth in Nigeria’s oil and gas sector.