The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of Premium Motor Spirit (petrol) to ₦915 per litre in both Lagos and Abuja, marking a 6.4% rise from the ₦860 per litre briefly seen in March 2025. The hike reflects mounting pressure from international oil markets and a weakening naira.

New Petrol Price Now ₦915 at NNPC Stations

Fuel stations operated by NNPC in Lagos have already adjusted their meters to reflect the updated petrol price, confirming a nationwide shift from the previously reduced rates. The new pricing signals Nigeria’s continued shift away from government fuel subsidies, which were officially phased out in 2023.

Since the removal of subsidies, petrol prices in Nigeria are now determined by market dynamics, including the global cost of crude oil and foreign exchange rates.

Dangote Refinery Depot Prices Trigger Upward Adjustment

Industry insiders say the price increase followed Dangote Refinery’s decision to raise its depot prices, prompting NNPC to respond with a similar adjustment. The company acted to avoid under-recovery losses and stay aligned with broader market movements.

The combination of rising international crude prices and a weaker naira has significantly raised the cost of importing or refining fuel in Nigeria.

Geopolitical Tensions Push Oil Prices Higher

The latest increase in petrol price is also linked to growing geopolitical tensions. Analysts attribute the crude oil price surge to instability in the Middle East, especially involving Iran—a major global oil supplier.

Recently, Iran’s nuclear facilities were the target of bombings, leading to market fears over oil supply security. In response, Brent crude spiked before easing slightly. However, risks remain elevated.

In a bold move, Iran’s parliament approved a bill that could lead to the closure of the Strait of Hormuz, a key passage for global oil shipments. If enforced, this action could trigger a global crude price shock, pushing prices toward $150 per barrel. This would have a ripple effect on refined fuel prices worldwide, including in Nigeria.

MRS Oil Also Increases Petrol Price

In line with the industry-wide price adjustment, MRS Oil Nigeria Plc, a distributor of Dangote Refinery products, also raised its petrol price in Lagos from ₦885 to ₦925 per litre, effective Saturday, June 21, 2025. This move highlights the broader shift across the downstream oil sector.

What This Means for Nigerian Consumers

The petrol price increase will likely have a domino effect on transportation, food, and general goods and services. As fuel prices climb, inflationary pressures may grow stronger unless the government or Central Bank intervenes to stabilize the naira and manage forex inflow.

Outlook: Can Fuel Prices Be Stabilized?

Experts say fuel price stability will depend on several key factors:

A stronger naira backed by foreign exchange reforms
Consistent global crude supply, especially from the Middle East
Boosted local refining capacity, led by Dangote Refinery and others
Market-driven competition to balance pricing power

While Dangote Refinery has become a central player in Nigeria’s downstream sector, stakeholders argue that increased domestic competition and policy clarity will be necessary to protect consumers and maintain price stability in the long term.