Petrol price hike looms as landing cost increases by N88 per litre in one week – oil marketers

According to reports, MEMAN confirmed in its daily energy bulletin on Wednesday, March 26, 2025, that the increase was from N797 per litre last week to N885 per litre this week, a situation it argues is expected in a deregulated environment.

The new landing cost is N25 higher than the N860 that end-user customers pay for Dangote petrol from MRS, other partners, and the Nigerian National Petroleum Company (NNPC) Limited retail outlets.

This is coming barely a week after Dangote refinery had announced that it would stop the domestic supply of petrol in naira due to the suspension of the naira for crude by the NNPC. It stated that the temporary decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) had rejected the decision by the Dangote refinery to sell refined petroleum products in dollars.

He said, “PETROAN opposes the sale of petroleum products or any other products within Nigeria in dollars. We believe that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation.

“We urge the government to ensure that all transactions within the country are conducted in the local currency, the naira, to protect the economy and the welfare of Nigerians.’’

MEMAN said that those accustomed to price control in the downstream sector are resisting the changes occasioned by deregulation.

The communique partly reads, “However, this transition requires patience, adaptation, and trust. As the market stabilises, challenges will arise, and resistance from those accustomed to price control is inevitable. But with robust regulation, industry collaboration, and public transparency, Nigeria can fully realise the benefits of this transformation.’’

MEMAN added that a well-functioning, deregulated market will attract more investment, improve efficiency, and create a more competitive landscape that benefits both businesses and consumers.

It stated, “As key industry stakeholders, MEMAN strongly supports the role of regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission in ensuring a fair, competitive, and well-regulated marketplace.

“It is imperative that their efforts remain focused on market stability, consumer protection, and building public confidence in the reform process.”