Petrol

By Sabiu Abdullahi

Former Vice President Atiku Abubakar has questioned the Federal Government over the rising cost of petrol, following the latest increase in the pump price to N1,470 per litre.

Atiku, through his spokesperson, Phrank Shaibu, said the development had added to the economic pressure confronting Nigerians, especially as higher fuel prices continue to affect transportation, food and other household expenses.

The former vice president also challenged the government to explain how the savings from the removal of the petrol subsidy have been used to cushion the impact of rising living costs.

According to him, Nigerians who have endured the effects of subsidy removal deserve to know what has happened to the funds saved by the government.

He said, “Petrol at N1,470 per litre is not merely a figure at the filling station. It enters the price of transportation, food, school runs, farming, manufacturing and virtually everything Nigerians buy. Every increase at the pump travels directly into the household budget.

“After all the pain imposed on Nigerians, they have a right to ask: where are the subsidy savings and where is the money?”

Atiku, who is the presidential candidate of the African Democratic Congress, ADC, also compared the current petrol price with the situation in 2008, when crude oil prices were significantly higher but petrol sold at a much lower price under the administration of the late President Umaru Musa Yar’Adua.

“With crude oil around $102.52 per barrel, Nigerians are paying as much as N1,470 per litre. In 2008, when crude oil reached about $147 per barrel, petrol sold at N65 per litre under the Yar’Adua administration. The difference is that government then understood that economic policy must ultimately protect the welfare of citizens,” he stressed.

The latest increase in petrol prices has continued to raise concerns over its wider effect on the cost of living, with transportation operators, businesses and households facing higher operating and daily expenses.

By Anas Abbas

The ongoing conflict in the Middle East has begun to impact Nigeria’s downstream petroleum sector, as the Dangote Petroleum Refinery announced a fresh increase in the price of Premium Motor Spirit (PMS), pushing it to about N1,245 per litre.

The latest adjustment reflects rising global crude oil prices triggered by geopolitical tensions in the region, particularly the ongoing hostilities involving major oil-producing countries.

Industry analysts say the surge in international oil benchmarks has significantly raised production and replacement costs for refiners.

Sources within the petroleum industry indicated that the new price was communicated to marketers and depot operators, with immediate effect across distribution channels. The increment marks another upward review in a series of price changes recorded within a short period.

Data from recent market trends show that petrol prices at the refinery have been on a steady rise in recent weeks,climbing from about N774 per litre to over N1,100 within days before reaching the current level.

Experts attribute the persistent increases to volatility in global crude oil markets, foreign exchange pressures, and supply uncertainties linked to the Middle East crisis. The situation has driven crude prices above the 100 dollar per barrel mark, further intensifying cost pressures on refiners.

The development is expected to have a ripple effect nationwide, as fuel marketers adjust pump prices in line with the higher depot cost. Analysts warn that the increase could worsen inflationary pressures, raising transportation costs and the prices of goods and services across the country.

Despite expectations that local refining would stabilise fuel prices, the latest hike underscores Nigeria’s continued exposure to global oil market dynamics, even with increased domestic production capacity.

By Zayyad I. Muhammad

The Petroleum Industry Act (PIA) 2021 does not prohibit the importation of petroleum products into Nigeria. There is no outright ban; instead, the Act supports a deregulated market with regulatory oversight governing imports.

Dangote’s grievance with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) under Engr. Farouk Ahmed centres on the continued issuance of import licences to petroleum marketers. And the failure to impose heavy levies and taxes on imported petroleum products 

According to the NMDPRA, Nigeria’s petrol imports averaged 52.1 million litres per day in November 2025.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority further disclosed that the NNPC imported the bulk of Nigeria’s petrol requirements in November 2025, with total imports by all marketers amounting to 1.563 billion litres during the month.

In the first round of this battle, Dangote appears to have “won,” as President Bola Ahmed Tinubu has replaced Engr. Farouk Ahmed of the NMDPRA and Gbenga Komolafe of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Oritsemeyiwa Amanorisewo Eyesan has succeeded them as Chief Executive Officer of the NUPRC and Engr. Saidu Aliyu Mohammed as Chief Executive Officer of the NMDPRA, subject to the Senate’s approval.

The bottom line is that this battle will continue. The new chief executives cannot outrightly ban the importation of petroleum products by the NNPC or other marketers, as there is no law to support such a ban. However, they are likely to engage Dangote cautiously to avoid the fate that befell Farouk Ahmed and Gbenga Komolafe. Which is not a good thing for any regulator in any industry 

If Dangote truly seeks full market patronage, pricing is key. His products must match or beat the cost of imported petroleum products. Marketers operate on a simple philosophy: buy good, sell good. 

If Dangote Refinery’s prices and processes are competitive or superior to imported products, no marketer would endure the challenges of sourcing foreign exchange, freight costs, and time delays when a cheaper and readily available alternative exists at their doorstep.

 Zayyad I. Muhammad writes from Abuja via zaymohd@yahoo.com.

By Uzair Adam Dangote Petroleum Refinery has once again reduced the gantry price of Premium Motor Spirit (PMS), popularly called petrol, cutting it by 3.5 per cent.

The new rate is now N835 per litre, down from the previous N865, following a steady decline in global crude oil prices, which recently dropped to $64 per barrel from over $70.

This marks the second price cut in recent weeks, after the refinery earlier brought the price down from N880 to N865 per litre.

However, marketers reportedly failed to reflect the reduction at retail outlets.

With a daily refining capacity of 650,000 barrels, the Dangote Refinery continues to shape Nigeria’s downstream petroleum sector and influence market trends.

By Abdullahi Mukhtar Algasgaini

Importers of petroleum products are expressing concerns over the continuous lowering of petrol prices by the Dangote Refinery, which they claim could force them to sell at a loss.

As consumers flock to outlets offering the lowest prices, dealers fear they may be forced out of the market.

On Wednesday, the Dangote refinery announced a N65 reduction in the ex-depot (gantry) price of petrol after lowering it from N890 to N825 per litre.

The price cut, effective from February 27, marks the second price drop of the year and the third adjustment in just two months.

Importers have voiced their concerns that the latest price cuts are making it less appealing to import petroleum products.

The cost of landing Premium Motor Spirit (PMS) reached about N927 per litre last week, higher than Dangote’s ex-depot price, leaving importers with little to no profit margin.

A dealer mentioned, “Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it’s good to reduce petrol prices, it’s taking a toll on our business.”

Another dealer believes that Dangote’s price cuts aim to deter fuel imports, stating, “This latest reduction will discourage fuel imports. Some of us will have to source our products locally.”

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, acknowledged the potential financial losses for importers.

He commended Dangote’s efforts, noting that the refinery’s price cuts could push importers out of business.

Ukadike also emphasized the need for improved distribution infrastructure to further reduce prices and enhance supply across Nigeria.

Despite the challenges, Ukadike reaffirmed the support of independent marketers for Dangote’s refinery, praising the development of the 650,000 single-train refinery in Nigeria and the removal of fuel subsidies.

He stated that his association will continue to purchase products from Dangote as long as prices remain competitive.

By Sabiu Abdullahi

The Nigeria Customs Service is set to auction off 15,325 litres of seized petrol to help alleviate transportation difficulties during the festive season.

The seized premium motor spirit, valued at N27.5 million, was confiscated during operations in Lagos and Ogun states.

According to Hussein Ejibunu, national coordinator of the service’s operation whirlwind, the comptroller-general of customs, Adewale Adeniyi, has directed that the products be auctioned at a rate of N10,000 per 25 litres, which translates to N400 per litre.

This move aims to ease the transportation hardship faced by the public during this festive period.

Ejibunu noted that the operation, which began on May 27, 2024, has yielded positive results, and the comptroller-general has urged operatives to continue their efforts to stamp out the activities of economic saboteurs.

As Ejibunu stated, “This operation has been on since 27 May 2024 and has yielded positive results, as the CGC has urged the operatives to continue sustaining the tempo until the activities of these economic saboteurs are stamped out of this country”.

The auctioning process has been facilitated by a court condemnation order and the completion of all legal processes by the office of the legal adviser.

Ejibunu added, “On this note, the CGC has directed Auctions of the seized product to members of the public at the rate of N10,000 per 25 litres.

“This will ease the transportation hardship during this festive period.”

By Sabiu Abdullahi

By Uzair Adam

Dangote Refinery has approached the court seeking the annulment of import licenses held by the Nigerian National Petroleum Company Limited (NNPCL), Matrix, and four other firms.

The Daily Reality learned that Dangote Refinery is also claiming N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL and the other companies.

Details later…

Mele Kyari, the head of the Nigerian National Petroleum Corporation Limited (NNPCL), revealed that the corporation has once again become the exclusive importer of petrol in the country.

Kyari stated that private companies are unable to import petrol due to difficulties in accessing foreign currency caused by shortages. 

“We are the only company importing petrol into the country. None of them can do it today. For them, access to foreign exchange is difficult. We create foreign exchange (FX), therefore we have access to FX, while their access to FX is limited,” Kyari said. 

This revelation has sparked discussions among experts, with oil and gas analyst Kayode Oluwadare unofficially confirming the return of the petrol subsidy in Nigeria.

Oluwadare highlighted that the move contradicts the initial purpose of deregulation, which aimed to enable independent marketers to import petrol independently. 

Oluwadare explained, “The government is gradually bringing back the conditions of the fuel subsidy regime. We are now back to the status quo. In the coming days, the petrol pump price will remain the same. We may also see the petrol pump price slightly coming down, with the current global trend, we are not likely to see an increase in petrol pump prices.” 

This development marks a significant shift in Nigeria’s energy landscape, raising concerns about the country’s economic stability and the implications for consumers in the face of global fuel market dynamics.