The Nigerian National Petroleum Company Limited has announced a significant increase in the price of Premium Motor Spirit (PMS), commonly known as petrol in major states.
As of April 2, 2025, the cost of petrol has risen to N950 per litre in the Federal Capital Territory (FCT), Abuja. In Lagos State, the retail price has also been adjusted, now set at N925 per litre at NNPC Limited’s filling stations.
This price adjustment marks a notable increase from the previous rate of N880 per litre in Abuja, reflecting a rise of N70 per litre in the nation’s capital. Similarly, petrol prices in Lagos have surged by N65, putting additional financial pressure on consumers already grappling with inflation.
This recent price hike follows a broader trend observed at various filling stations linked to the cessation of petroleum products sales in naira by the Dangote refinery.
This halt has arisen due to stalled negotiations regarding the naira-for-crude deal that was initially established last year. Under the terms of this agreement, refiners like the Dangote refinery were to sell petroleum products in naira in exchange for crude oil transactions conducted in the local currency.
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The intention behind the agreement was to mitigate the adverse effects of foreign exchange fluctuations on the pricing of crude oil and refined products, thereby alleviating the pressure on the naira.
However, as the expiration date of the initial contract approached on March 20, the parties involved have yet to reach a consensus on a new deal. Consequently, Dangote refinery has had to resort to sourcing crude oil from the international market, further complicating the local fuel supply situation.
It is noteworthy that Nigeria first commenced the sale of crude oil and refined petroleum products in naira to its local refineries on October 1, 2024, as part of a broader economic strategy to stabilize the local market and strengthen the currency.
The current developments, however, suggest ongoing challenges in achieving a stable and cooperative framework for the petroleum sector.