Fuel price shock: Marketers predict new pump price hike as petrol ex-depot cost jumps to N1,200

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The average ex-depot price of petrol has climbed from about N1,120 to N1,200 per litre, raising concerns that motorists could soon face higher pump prices across Nigeria. The increase comes days after the Dangote Petroleum Refinery announced the suspension of petroleum product sales in naira, opting instead for transactions in United States dollars.

Depot prices rise as marketers adjust to dollar policy

A market survey across major fuel depots in Apapa, Lagos, showed that several depots have adjusted their ex-depot prices upward. Data obtained from petroleum trading platform Petroleumprice.ng indicated that Pinnacle increased its loading price from N1,225 to N1,250 per litre, while Sobaz sold at N1,210 per litre. Sahara and Ardova were both offering petrol at N1,150 per litre.

Despite the rise at the depot level, many filling stations had yet to increase their pump prices as of Thursday. Most NNPC Retail outlets were still dispensing petrol at about N1,153 per litre. Industry marketers who spoke on the development said the market was still adjusting to the refinery's new pricing arrangement. They, however, projected that many retail outlets would likely revise their pump prices upward by Friday, July 17, 2026, to reflect the higher landing costs.

The survey also found that several MRS filling stations, one of Dangote Refinery's major retail partners, were not selling fuel during the afternoon, adding to concerns over temporary supply disruptions.

PETROAN warns dollar pricing will weaken naira, worsen inflation

Petroleum marketers described the refinery's latest pricing decision as a major disruption to the downstream sector, arguing that it has introduced uncertainty into fuel supply and pricing. They noted that the suspension of naira-denominated sales has compelled marketers to reassess their procurement strategies, with many now anticipating increased operational costs that could ultimately be transferred to consumers.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticised the move to price locally refined petroleum products in US dollars. Speaking on behalf of the association, its National Public Relations Officer, Dr. Joseph Obele, warned that denominating domestic fuel transactions in foreign currency would increase demand for scarce dollars, put additional pressure on Nigeria's foreign exchange market and weaken the naira.

According to him, higher foreign exchange costs would inevitably translate into increased petrol prices, higher transportation costs and more expensive goods and services, thereby worsening inflation across the country. Obele urged the Federal Government to strengthen and sustain the crude-for-naira arrangement to ensure local refineries receive adequate crude oil supplies. He also called on NNPC Limited to allocate more crude oil to domestic refineries to reduce reliance on imported crude and preserve naira-based petroleum transactions.

For Nigerian consumers and businesses, the shift to dollar-denominated fuel pricing means higher pump prices are likely imminent. This will push up transportation costs and the price of goods, adding fresh pressure on the naira and feeding into broader inflation across the economy.

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