Despite a recent reduction in petrol prices by Dangote Petroleum Refinery, motorists and commuters in Lagos are yet to feel any relief, as retail prices remain elevated across filling stations.
The refinery lowered its gantry price of Premium Motor Spirit (PMS) from N1,275 to N1,200 per litre, raising expectations of a corresponding drop at the pumps. However, checks across Lagos show that major marketers continue to sell petrol at significantly higher rates. MRS Oil Nigeria Plc retailed fuel at around N1,300 per litre, while Mobil Nigeria sold at about N1,330 per litre.
This pricing gap has continued to strain consumers, particularly in the transportation sector. Commuters reported steep fare increases, with trips such as Ikorodu to Mile 12 rising to as much as N2,600—far above previous averages of around N1,500.
Industry analysts suggest that while Dangote Refinery has ramped up production and remains attractive to marketers, broader market dynamics are limiting immediate price reductions. According to S&P Global, the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently eased import restrictions by issuing licences to additional marketers, allowing fuel importation to continue alongside local refining.
Speaking on the development, Colman Obasi of the Oil and Gas Service Providers Association of Nigeria noted that the Dangote refinery has the capacity to meet domestic demand and even export surplus products. He argued that strengthening local refining would help conserve foreign exchange and boost national revenue.
Similarly, Olatide Jeremiah of Petroleumprice.ng described the refinery’s latest price adjustment as a strategic move to consolidate its position as a market leader in Nigeria’s downstream sector.
On the global front, oil prices remain volatile due to geopolitical tensions in the Middle East. Nigeria’s Bonny Light crude has climbed to about $110 per barrel, up from $100, reflecting tighter supply conditions. Analysts point to developments around the Strait of Hormuz—a critical route for global oil shipments—as a key factor influencing prices.
Energy expert Wumi Iledare warned that rising crude prices, combined with exchange rate pressures, are already translating into higher transport costs, food prices, and operational expenses for businesses.
Echoing similar concerns, Chinyere Almona of the Lagos Chamber of Commerce and Industry highlighted a persistent supply-demand imbalance, noting that Nigeria’s daily petrol consumption—estimated at over 50 million litres—still exceeds effective domestic refining capacity.
She called for targeted government intervention to cushion the economic impact, particularly for key sectors like transportation, agriculture, and small businesses, while also emphasising the need for exchange rate stability and consistent policy direction.
Meanwhile, global tensions continue to draw attention beyond the energy market. Pope Leo XIV, speaking during his Palm Sunday homily, condemned ongoing conflicts in the Middle East and called for peace, stressing that war only deepens human suffering and instability.
As both domestic and global pressures persist, Nigerians may have to wait longer before any meaningful relief is felt at the fuel pumps.