Petrol Price Hits N935 in Lagos Amid Dangote Refinery’s Naira Suspension and Global Supply Pressures
LAGOS — Petrol prices in Lagos have surged to N925–N935 per litre as of March 31, 2025, marking the highest rate in months. The spike follows Dangote Refinery’s suspension of naira-denominated sales and rising global fuel costs, compounded by supply chain disruptions and currency volatility.
Key Drivers of the Price Hike
- Dangote Refinery’s Naira Suspension:
- On March 19, 2025, Dangote Refinery halted sales of petrol in naira, citing a mismatch between its crude oil purchases (denominated in dollars) and sales proceeds. This forced marketers to import fuel at higher costs, passing expenses to consumers.
- NNPC’s Clarification: The Nigerian National Petroleum Company Limited (NNPC) denied halting the naira-for-crude deal but acknowledged that the six-month agreement expired in March 2025. Discussions to renew it are ongoing.
- Global Supply Constraints:
- Seasonal Refinery Maintenance: Reduced European refinery output and a fire at Italy’s Falconara refinery tightened global supply, pushing up prices.
- Summer Gasoline Demand: Europe’s shift to premium summer-grade gasoline increased arbitrage costs, raising Nigeria’s import expenses.
- Landing Cost Surge:
- The landing cost of petrol rose by N46 per litre in two weeks, reaching N843.28 per litre due to foreign exchange rates, logistics, and regulatory fees.
Regional Price Variations
| Region | Price per Litre | Key Stations |
|---|---|---|
| Lagos | N925–N935 | TotalEnergies, MRS |
| South-West | N940 | NIPCO (Magboro, Ogun) |
| South-South | N960 | Edo, Rivers, Cross River |
| North | N950–N960 | Abuja, Kano, Zamfara |
Abuja’s Empire Filling Station now sells petrol at N975 per litre, while NNPC stations maintain N880 per litre.
Industry Reactions
- Marketers’ Struggles:
- PETROAN (Petroleum Products Retail Outlets Owners Association of Nigeria) condemned Dangote’s dollar sales, warning of inflationary pressures and scarcity.
- Logistics Costs: Ship-to-ship transfers and smaller cargo sizes inflate expenses, with marketers urging efficiency measures like bulk purchases.
- Public Outcry:
- Motorists in Lagos expressed frustration, with many blaming the government for failing to stabilize prices8.
- Social Media: Hashtags like #FuelPriceCrisis trended, highlighting fears of cascading inflation.
Government and NNPC’s Response
- NNPC reiterated its commitment to stabilizing prices but acknowledged challenges in renewing the naira-for-crude deal with Dangote Refinery.
- MEMAN (Major Energy Marketers Association of Nigeria) advised marketers to negotiate better forex rates and optimize logistics to reduce costs.
Conclusion
The petrol price surge underscores Nigeria’s vulnerability to global energy trends and domestic policy shifts. Until Dangote Refinery resumes naira sales or NNPC secures stable crude allocations, consumers face higher fuel costs, threatening economic recovery.
