Private petroleum depots across Lagos and other key fuel hubs have increased the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to as high as ₦800 per litre.
According to data from petroleumprice.ng on Saturday, a sharp 48-hour increase in depot prices is tightening marketers’ margins and raising fears of a nationwide spike in retail pump prices.
Punch disclosed that in Lagos, the Dangote depot, which typically offers the lowest prices, sold petrol at ₦703 per litre on Friday, up slightly from ₦702.50 on December 31, 2025. However, other depots reported more significant hikes.
Eterna and Integrated depots adjusted their ex-depot prices to ₦800 per litre on Friday, a notable leap from the ₦726 per litre recorded at Shellplux and AIPEC earlier in the week. Similarly, Aiteo and Lister depots priced PMS at ₦780 per litre, up from the ₦750-₦760 range seen on Wednesday.
The price hike was even more pronounced in Warri, a critical petroleum logistics hub. Matrix Energy and other major depots there sold petrol at ₦805 per litre on Friday, up from ₦800 on Wednesday. The rapid increase was linked to tighter supply chains and rising transportation costs, as marketers brace for possible scarcity.
Recall that in December, Dangote Petroleum Refinery reduced its petrol gantry price from ₦828 to ₦699 per litre, effective December 11. This was the refinery’s 20th price adjustment in 2025.
Industry analysts attribute the recent price surge to the temporary shutdown of the petrol unit at the Dangote Refinery, which had emerged as a key domestic supplier post-subsidy removal.
Jeremiah Olatide, CEO of PetroleumPrice.ng, told Sunday Punch that importers are attempting to recoup losses incurred due to Dangote’s aggressive pricing last month.
“This price uptick is a deliberate move by importers to recoup losses from the massive price slash by the Dangote Refinery in December,” he said.
He noted that many depot operators are holding back supplies in anticipation of tighter availability.
“Importers are postulating that there may be supply constraints in January because of the refinery’s plant upgrade, and they see this as an opportunity to make up for December losses,” Olatide added.
“They are keeping products in tank, hoping to sell above their landing cost as soon as there is a supply glitch,” he further explained.
Olatide warned, however, that this strategy might not be sustainable, especially if the Dangote Refinery re-enters the market aggressively.
“We will see how the new pricing plays out, but there will likely be a fightback from the refinery,” he cautioned.
Depot owners have started repricing available stock, citing higher replacement costs, forex instability, and uncertain import schedules.
The report from petroleumprice.ng also noted that Brent crude closed at $60.20 per barrel on Friday. Meanwhile, the naira depreciated further on the parallel market, trading at ₦1,495/$, up from ₦1,475/$ on Wednesday.
Depot price movements typically signal changes at filling stations. Industry insiders warn that if the trend continues, petrol prices could exceed ₦700 per litre at the pumps across several cities.
Marketers say they are struggling to absorb the costs due to logistics, financing challenges, and forex volatility, making pump price increases almost inevitable.
Following the full deregulation of the downstream sector, Nigeria’s petrol prices are now shaped by market forces, including crude prices, exchange rates, and supply availability.
The 650,000-barrel-per-day Dangote Refinery had raised hopes for pricing stability through local refining. But its temporary shutdown has once again highlighted the fragile state of the domestic fuel supply.