The pump price of Premium Motor Spirit (PMS) is inching closer to ₦1,000 per litre as tensions in the Middle East and a tanker drivers’ strike in Lagos drive up costs across depots nationwide.
Prices began surging at the start of the week, with data from Petroleumprice.ng revealing significant increases across major fuel depots. Dangote Petroleum Refinery hiked its price from ₦825 to ₦840 per litre, Rainoil jumped from ₦850 to ₦900, while Fynefield and Mainland pushed their rates to ₦930 and ₦920 respectively.
Other suppliers also followed suit:
- Sigmund: ₦920
- Matrix Warri: ₦910
- NIPCO: Rose from ₦827 to ₦895
- Aiteo: ₦840
These surging ex-depot prices have heightened fears that the retail pump price for consumers may cross the ₦1,000 mark in the coming days.
Supply Crisis Looms Amid Tanker Drivers’ Strike
While the global oil market contributed to the hike, insiders say a strike by tanker drivers along the Lekki-Epe corridor in Lagos has added local strain to distribution. The drivers reportedly refused to load fuel on Monday in protest over a ₦12,500 E-Call Up fee imposed by the Lagos State Government.
A depot operator, who requested anonymity, warned that fuel loading was halted entirely on Monday, and unless the government addresses the dispute quickly, Nigeria could face another round of fuel scarcity.
Global Crude Surge Piles More Pressure
Oil prices rose sharply following escalating military tensions in the Middle East. Nigeria’s crude grades Bonny Light, Brass River, and Qua Iboe traded around $77 to $78.62 per barrel on Monday, a notable jump from the $65 average just days earlier. Although this temporarily boosts Nigeria’s fiscal revenues, analysts caution it will raise local fuel costs as refiners pay more for crude.
Despite a $75 benchmark in Nigeria’s 2025 budget, the current spike only adds to downstream cost pressures.
Marketers Exploiting Nigerians — PENGASSAN
Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has slammed oil marketers for exploiting Nigerians through inflated pump prices, accusing them of price manipulation in a deregulated market.
At a press briefing in Abuja, Osifo insisted petrol should currently sell between ₦700 and ₦750 per litre, not the ₦875–₦905 range currently seen nationwide.
“Crude oil prices have dropped from about $80 to around $60 per barrel, yet pump prices remain nearly unchanged,” he said. “This inconsistency shows a clear failure of regulatory oversight.”
He pointed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as lacking adequate enforcement, urging them to begin publishing transparent pricing templates under the deregulation framework.
Refinery Shutdowns and Political Interference
Osifo also blamed political interference not technical challenges for the persistent shutdowns of Nigeria’s refineries, despite over $2.5 billion spent on rehabilitation. He specifically referenced the Port Harcourt Refinery, which is currently shut down for a 30-day maintenance operation and is expected to resume next week.
“The inefficiencies in Nigeria’s state-owned refineries are not new,” he said. “They are largely driven by politics, not operational issues.”
Insecurity and Divestment in the Oil Sector
The union also raised alarm over worsening insecurity in oil-producing areas, particularly the waterways, warning that multinational oil firms are divesting despite new cost-saving incentives from the Federal Government.
Calls for Urgent Government Action
Industry players, including the Major Energies Marketers Association of Nigeria (MEMAN), echoed concerns over the N12,500 levy on tanker drivers. MEMAN Executive Secretary Clement Isong called on the Lagos State Government to engage stakeholders immediately to prevent further disruption.
“Nigerians are already facing enough hardship. Additional fees like this will only make things worse,” he warned.
With pump prices creeping toward the four-digit mark, the fuel crisis is fast becoming a test of the Tinubu administration’s deregulation policy, infrastructure readiness, and ability to manage economic volatility both locally and globally.
