The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (petrol) to N915 per litre in both Lagos and Abuja, marking a 6.4% rise from the N860 per litre briefly seen at some stations in March 2025.
Several NNPC stations in Lagos have already adjusted their meters to reflect the new pricing, signaling a shift from the temporary reduction that followed an earlier drop in supply costs.
This price hike is part of Nigeria’s transition away from fuel subsidies. Since mid-2023, petrol prices have been determined by market forces—driven largely by global crude oil prices and the exchange rate of the naira.
The adjustment followed Dangote Refinery’s move to raise its depot prices, prompting NNPC to revise its rates to remain competitive and prevent financial losses. A combination of rising global oil prices and a weakening naira has further increased the cost of fuel imports, making higher pump prices inevitable.
Industry observers link the surge to recent geopolitical instability. Iran’s role as a major oil producer has placed it at the center of current market volatility. Following recent bombings connected to its nuclear facilities, Brent crude briefly rose before settling lower. However, escalating tensions could push prices even higher.
In a bold move, Iran’s parliament recently approved plans to close the Strait of Hormuz—a vital route for global oil shipments. If enforced, global crude prices could skyrocket, potentially reaching up to $150 per barrel. Such a spike would significantly impact refined fuel prices around the world, including in Nigeria.
MRS Oil Nigeria Plc, a key distributor of Dangote Refinery products, also increased its petrol price in Lagos from N885 to N925 per litre, effective Saturday, June 21, 2025, reflecting broader adjustments across the industry in response to global market shifts.
Experts suggest that stabilizing fuel prices in Nigeria will depend on a stronger naira, consistent global crude supply, and increased domestic refining. While Dangote Refinery plays a major role in distribution, greater local competition and production capacity could help reduce costs and ensure long-term stability in the fuel market.
