Nigerians Buy Petrol N930 Per Litre as Naira-for-Crude Deal Fails

By Adedapo Adesanya

Nigerians, after facing respite with reduced price of premium motor spirit (PMS), known as petrol, in recent weeks, are now faced with a new challenge as the product retails for as high as N930 per litre in Lagos and higher in other parts of the country.

While Business Post gathered in Lagos that it retails for N930 per litre, it is selling as high between N950 and N970 per litre, depending on the filling stations in Abuja and northern parts of the country.

Our correspondents gathered from three filling stations, including Mobil, AP, and Northwest, that prices were around N930 per litre.

The new price regime followed an announcement by Dangote Refinery temporarily halting the sale of petroleum products in Naira, which is a result of a price war brought on by the deregulation of the downstream sector.

The $20 billion refinery based in Lagos said the sales of its products in Naira have exceeded the value of Naira-denominated crude it has received from the Nigerian National Petroleum Company (NNPC) Limited.

“This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US Dollars,” the company said in a statement earlier in March 2025

“As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the company explained.

Over the last few months, the price war between the NNPC and Dangote reduce prices to as low as N830 per litre— easing pressure on Nigerians.

However, with oil prices rising in the international market, the landing cost of imported petrol has increased to a high of N885 per litre last week.

On February 26, 2025, the $20 billion refinery owned by Africa’s richest man and industrialist Aliko Dangote slashed the ex-depot price of petrol from N890 to N825 per litre.

Under the new arrangement, customers purchased the petrol at N860 per litre at selected outlets in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East.

Almost immediately, the NNPC reduced its retail price from N945 to N860 in Lagos, with a similar price reduction reflected at NNPCL outlets in other states of the Federation.

Now, with the cost of landing cost increasing imported petrol costs, Dangote Refinery will be seeking to play its card to cover its margins.

Recall that last month, the NNPC suspended the Naira-for-crude deal with private refiners, including Dangote Refinery, fuelling its suspension of the sale of petrol in local currency.