Despite the recent reduction in the gantry price of Premium Motor Spirit (PMS), popularly known as petrol, by Dangote Petroleum Refinery from N1,275 to N1,200 per litre, filling stations across Lagos and surrounding areas have continued to sell the product at significantly higher rates.
Many motorists had expected the N75 per litre reduction announced by the refinery to immediately translate into lower pump prices at retail outlets. However, checks across several fuel stations in Lagos revealed that prices remain elevated.
At some stations visited, MRS outlets sold petrol at N1,300 per litre, while Mobil stations dispensed the product at N1,330 per litre, leaving consumers disappointed as the anticipated relief failed to materialise.
The sustained high fuel price has also continued to worsen transportation costs across the metropolis. Commercial transport operators have maintained what many commuters describe as exorbitant fares, further increasing the burden on residents already grappling with economic hardship.
On Monday, passengers travelling from Ikorodu to Mile 12 reportedly paid as much as N2,600, a sharp increase from the previous fare of about N1,500 before the latest surge in petrol prices.
Meanwhile, Dangote Petroleum Refinery continues to enjoy strong patronage from oil marketers, even after the issuance of import licences to six marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to reports from market analysts, the regulatory authority recently eased restrictions on petrol importation by approving a fresh batch of licences for six local marketers, a move that has temporarily renewed activity among fuel importers.
Reacting to the development, the National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), Colman Obasi, said the Dangote refinery possesses sufficient capacity to meet local demand and supply neighbouring markets.
He noted that the refinery is strategically positioned to dominate the domestic market while also supporting exports.
“Fuel importers are in business to make profit, while the Dangote refinery has, over time, increased its operational capacity to meet domestic demand,” he said.
Obasi further stressed that local refineries, especially Dangote, should be encouraged to satisfy domestic needs and export refined petroleum products, noting that such a move would help conserve foreign exchange and boost national revenue.
Also speaking on the development, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said the recent gantry price reduction has further strengthened Dangote refinery’s standing in the domestic market.
According to him, the refinery has now firmly positioned itself as a market leader in Nigeria’s downstream petroleum sector.
Beyond the domestic market, concerns are also mounting over global oil price movements driven by tensions in the Middle East.
Nigeria’s Bonny Light crude has reportedly risen to about $110 per barrel, up from $100 per barrel, amid fears of tightening global supply.
However, analysts say there may be signs of possible stability after Iran reportedly permitted the passage of 10 tankers through the Strait of Hormuz, one of the world’s most strategically important oil routes.
Industry observers believe some of the vessels may be carrying Saudi Arabian crude, although the full details of the shipments remain unclear.
Commenting on the international situation, petroleum economist Wumi Iledare said the conflict in the Middle East has intensified pressure on global oil supply, leading to higher crude prices.
He explained that because petrol pricing in Nigeria is closely tied to global crude oil prices and exchange rate fluctuations, households and businesses are already feeling the impact.
“The Middle East tensions have tightened global oil supply and pushed crude prices upward. Since petrol prices are closely linked to crude oil prices and exchange rate movements, Nigerian households and businesses are already facing higher transport costs, rising food prices, and increased operating expenses,” he said.
Similarly, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Chinyere Almona, described the current situation as a reflection of Nigeria’s long-standing structural supply deficit.
According to her, the country’s daily petrol demand, estimated at between 50 and 53 million litres, continues to outpace effective domestic refining capacity.
She called for urgent government intervention, particularly through targeted and time-bound support for critical sectors such as transportation, agriculture, and small and medium-scale enterprises (SMEs), to cushion the inflationary impact.
Almona also emphasised the need to stabilise the naira through improved foreign exchange liquidity and stronger policy coordination, noting that exchange rate volatility has a direct effect on fuel prices.
She added that clear and consistent policy direction from the government is essential to boost investor confidence in the deregulated petroleum market.
According to her, while rising crude prices may ordinarily present fiscal opportunities for Nigeria, the country’s gains remain limited by production challenges and structural inefficiencies.
PETROL PRICES REMAIN HIGH DESPITE DANGOTE REFINERY PRICE CUT, COMMUTERS GROAN OVER RISING TRANSPORT FARES
