The Nigerian National Petroleum Company (NNPC) Limited has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N915 per litre in Lagos and N945 per litre in Abuja, amid growing global oil market volatility triggered by escalating tensions between Iran and Israel.
This marks a N45 increase in Lagos from the previous N870 and a N35 rise in Abuja from the prior N910 per litre, as confirmed by checks at various NNPC retail outlets across both cities on Monday.
At the NNPC outlet on Fin Niger, Badagry Expressway, and another at Igando, Lagos, attendants confirmed the new pricing regime of N915 per litre. In Abuja, the price was pegged at N945 at the NNPC station in the Federal Housing area of Kubwa.
The price hike comes just two days after the Dangote Petroleum Refinery adjusted its ex-depot price of petrol to N880 per litre, sparking a ripple effect across the downstream market. Several other marketers, including MRS and TotalEnergies, have followed suit.
At MRS stations in Lagos, petrol now sells for N925, up from N875. TotalEnergies has raised its price to N910, while independent marketers such as Oluwafemi Arowolo Petroleum in Iba are selling as high as N920.
Global Context: Tensions Push Oil Prices Higher
The latest increase in domestic pump prices is occurring against the backdrop of heightened instability in global energy markets. Brent crude, the international oil benchmark, surged to $93.65 per barrel on Monday, up from $87 just a week ago, as fears of a broader Middle East conflict spiked following Israeli airstrikes on Iranian military installations in Syria and retaliatory moves by Tehran.
The standoff has revived concerns over supply disruptions across the Persian Gulf — a critical artery for global oil shipments — forcing traders to reprice risk and increasing cost pressures for import-dependent countries like Nigeria.
Energy economist Dr. Kelechi Eneh told The Cable:
“While Nigeria now has a functional mega-refinery in Dangote’s facility, the crude it refines is still priced at international benchmarks. Any volatility in the global market directly impacts the local pricing framework, especially in the deregulated environment.”
Dangote’s Dominance and Downstream Shake-Up
The pump price increase also coincides with the Dangote Refinery’s recent announcement of a nationwide fuel distribution plan, backed by a fleet of 4,000 compressed natural gas (CNG)-powered tankers. The refinery has promised more efficient logistics for petrol and diesel, which could potentially stabilise long-term supply.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned over the weekend that the refinery’s "forward integration" into distribution could create a “monopoly in disguise,” potentially displacing smaller players and threatening thousands of jobs in the downstream sector.
Similarly, the Major Energies Marketers Association of Nigeria (MEMAN) urged regulatory agencies to clarify the extent and legality of the Dangote refinery’s logistics integration plan to avoid “market distortion.”
The latest surge in fuel prices is likely to worsen Nigeria’s already precarious inflation crisis. Transport costs — which heavily influence food prices — are expected to spike again, dealing another blow to working-class Nigerians still reeling from last year’s fuel subsidy removal.
Speaking with The Cable, Lagos commuter Iyabo Akinwale said: “Every time the price of fuel goes up, we pay more for everything — food, transport, even school fees. But our salaries have stayed the same. This country is becoming impossible to live in.”
With core inflation now above 33% and food inflation nearing 40%, analysts warn that further increases in fuel prices could fuel civil unrest and deepen poverty levels.
The Tinubu administration, which has championed subsidy removal as a fiscal necessity, faces growing pressure to cushion the impact of deregulation through targeted palliatives and stronger price-monitoring mechanisms.
As oil prices climb globally amid geopolitical shocks and local petrol prices follow suit, Nigerians are caught between international market forces and domestic structural inefficiencies. While the government banks on private refineries to stabilise fuel supply in the long run, the current pain at the pump shows no signs of easing.
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