Business

Reps move to end dollar charges on locally refined petrol

Published

2 hours ago

July 29, 2026

Reps move to end dollar charges on locally refined petrol

The House of Representatives has moved to address growing concerns in Nigeria’s downstream petroleum sector, opposing the continued use of US dollar-denominated charges for petroleum products refined and transported within the country while also pledging to investigate allegations of irregularities in the allocation of fuel import licences.

The House Committee on Petroleum Resources (Downstream) disclosed the planned intervention during an interactive session with major industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Energies Marketers Association of Nigeria (MEMAN).

The engagement is part of ongoing consultations on proposed amendments to the Petroleum Industry Act (PIA) and wider reforms aimed at strengthening domestic refining, improving energy security, encouraging investment and promoting a transparent and competitive downstream petroleum market.

Chairman of the committee, Ikenga Ugochinyere, said the lawmakers would invite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Ports Authority (NPA), the Central Bank of Nigeria (CBN), refiners and other relevant institutions to respond to concerns raised by industry operators.

He said the outcome of the consultations would guide proposed amendments to the PIA and other legislative measures designed to address regulatory gaps, reduce operational challenges and improve the efficiency of the downstream petroleum sector.

READ ALSO:

“We’ll be meeting with the NMDPRA, NUPRC, the refiners—both modular refinery owners and the large refinery operators—as well as the NPA, the CBN and other relevant agencies on the issues that have been raised,” Ugochinyere said.

“These will form part of our downstream reforms, including proposed amendments to the Petroleum Industry Act and legislative motions to correct identified gaps.”

Ugochinyere expressed concern over reports that some port-related charges for petroleum products refined and moved entirely within Nigeria were still being billed in US dollars.

He said foreign currency charges on domestic petroleum transactions could increase the operating costs of marketers and eventually contribute to higher petrol pump prices, despite the fact that the products are produced and distributed locally.

“We have taken special note of the issue of dollar-denominated charges by the Nigerian Ports Authority,” the lawmaker said.

“It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit.”

The committee also said it would investigate allegations that fuel import licences for the first, second and third quarters of 2026 were repeatedly allocated to the same group of marketers.

Ugochinyere said the NMDPRA would be required to explain the criteria used in issuing import permits and clarify whether all qualified operators were given fair and transparent access.

“We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators,” he said.

“We will raise these questions when the NMDPRA appears before the committee to explain the criteria used in issuing those licences.”

The committee chairman said Nigeria must develop a balanced policy that supports the country’s expanding domestic refining capacity while protecting the investments of petroleum marketers who have built storage, distribution and logistics infrastructure over several decades.

He noted that the volume of fuel imports should reduce as more local refineries begin operations. However, he said Nigeria must retain reliable contingency arrangements to prevent shortages when domestic refineries undergo maintenance or experience production and logistics disruptions.

“How do we encourage and protect owners of domestic refineries while also protecting the investments of marketers?” Ugochinyere asked.

“We cannot continue importing the same volume of petroleum products as before, given that more refineries are coming on stream. At the same time, we must guarantee national energy security in case local refineries experience disruptions.”

“We need a balanced framework that supports domestic refining, preserves healthy competition and ensures the country always has a reliable fuel supply.”

READ ALSO:

Presenting DAPPMAN’s memorandum, the association’s Executive Secretary, Olufemi Adewole, called on lawmakers to address what he described as structural challenges affecting petroleum marketers and depot operators.

Adewole said at least 72 of Nigeria’s 154 licensed petroleum depots recorded little or no consistent trading activity over the past year.

According to him, the situation was linked to an uneven operating environment, persistent trading losses and limited access to alternative sources of petroleum products.

“Not fewer than 72 of the 154 depots nationwide had no regular or consistent trading activity in the last one year,” Adewole said.

“They are merely paying salaries without engaging in meaningful business. This is largely due to an uneven playing field, persistent trading losses and the inability to access alternative sources of supply.”

While welcoming the growth of domestic refining, including operations at the Dangote Refinery, DAPPMAN warned against excessive market concentration in the supply of Premium Motor Spirit (PMS), commonly known as petrol.

The association said the downstream market should remain competitive and provide qualified marketers with fair access to locally refined petroleum products.

“Our experience has been one of mixed feelings, bordering on an almost total monopoly in the supply of PMS by the mega refinery,” Adewole said.

“Although the Petroleum Industry Act provides for a fully deregulated market where prices are determined by market forces, that has not been our experience.”

DAPPMAN also raised concerns over the alleged repeated allocation of fuel import permits to the same group of marketers and called for greater transparency and fairness in future allocations.

“The same set of marketers received import allocations in the first, second and third quarters of 2026, as though other qualified operators do not exist,” Adewole said.

“This is unacceptable, and we urge this committee to ensure greater transparency and fairness in future allocations.”

The association maintained that fuel importation should remain available as a regulated contingency option whenever domestic refining capacity is unable to meet national demand.

According to DAPPMAN, maintaining an import option could help prevent fuel shortages during refinery maintenance, operational disruptions or major supply-chain challenges.

“In order to avoid the return of fuel queues, the import option provided under the Petroleum Industry Act must remain available as a regulated contingency mechanism whenever domestic supply is insufficient,” Adewole said.

The association also alleged that marketers were subjected to duplicated port-related charges for petroleum products moved entirely within Nigeria.

It said operators could be billed at the loading point and again at the discharge port, while some local petroleum transactions continued to attract foreign currency-denominated charges.

“Marketers are invoiced at the loading point and again at the discharge port for products moved entirely within Nigeria,” Adewole said.

“More critically, certain charges are still imposed in US dollars despite the purely domestic nature of these transactions.”

DAPPMAN urged the National Assembly to ensure compliance with government directives on foreign currency billing for local transactions and introduce reforms that would reduce logistics costs across the petroleum supply chain.

The association also called for accelerated dredging of major waterways, rehabilitation of pipelines and depots, improved rail transportation for petroleum products and the development of a national downstream logistics master plan.

The National President of IPMAN, Abubakar Shettima, commended the Federal Government for encouraging private investment in domestic refining but said petroleum marketers continued to face high borrowing costs, multiple taxation, foreign exchange volatility, inadequate storage facilities and limited access to locally refined products.

He called for policies that would strengthen local refining while preserving competition and ensuring equitable access to petroleum products.

“We support strengthening domestic refining, but we also need equitable access to locally refined petroleum products, affordable financing and reduced regulatory costs that ultimately increase pump prices,” Shettima said.

The IPMAN president proposed the establishment of a specialised Petroleum Bank to provide single-digit interest loans to operators in the downstream sector.

He said many marketers relied on commercial bank loans with interest rates of up to 32 per cent, adding that high financing costs were often passed on to consumers through petrol prices.

“Today, marketers borrow from commercial banks at interest rates of up to 32 per cent,” he said.

“Those costs are eventually passed on to consumers. We are proposing a Petroleum Bank that will provide single-digit interest loans, similar to what exists in the agriculture and industrial sectors.”

Shettima also urged multinational oil companies involved in fuel importation to invest in Nigeria’s domestic refining capacity and support the country’s transition towards greater self-sufficiency in refined petroleum products.

He said the expansion of local refineries could reduce Nigeria’s exposure to foreign exchange pressures and international supply disruptions while creating new investment and employment opportunities.

On the future of Nigeria’s state-owned refineries, Shettima suggested that independent petroleum marketers should be allowed to participate in their management and operations.

“If independent marketers are allowed to participate in operating the government refineries, we believe we can contribute significantly to their revival,” he said.

The House committee’s consultations come as Nigeria seeks to consolidate reforms in the downstream petroleum sector following the implementation of the Petroleum Industry Act and the expansion of domestic refining capacity.

The committee is expected to engage regulators, refiners, NNPC Limited, financial institutions and other stakeholders before proposing legislative measures aimed at improving transparency, encouraging investment, strengthening competition and ensuring a reliable supply of petroleum products.

The lawmakers’ intervention could influence future policies on local petrol pricing, fuel import permits, port charges, refinery access and downstream logistics as Nigeria works towards a more transparent, competitive and energy-secure petroleum market.

Reps move to end dollar charges on locally refined petrol

Related Topics:dollar charges Featured petrol

Don't Miss

Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Railway

Oyetola, VP’s aide, Opeifa to drive discussions at 2026 TCAN Transport Summit

Published

3 days ago

July 26, 2026

Trends Admin

Oyetola, VP’s aide, Opeifa to drive discussions at 2026 TCAN Transport Summit

LAGOS – Nigeria’s drive to build a more efficient and integrated transportation system will take centre stage on September 24 as the Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, the Technical Adviser to the Vice President on Transportation, Logistics and Innovation, Dr Segun Obayendo, and the Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, have confirmed their participation in the 2026 Transportation Summit organised by the Transportation Correspondents Association of Nigeria (TCAN).

Their participation is expected to provide a major boost to the annual summit, which has evolved into one of the country’s foremost platforms for discussions on transportation policy, infrastructure development, logistics and sustainable mobility.

The summit, themed “Unlocking Nigeria’s Economic Growth Through Transportation Logistics,” will bring together policymakers, regulators, transport operators, industry leaders, development partners, academics and other stakeholders to chart practical pathways for strengthening Nigeria’s logistics ecosystem and accelerating economic growth.

Participants will examine the current state of the nation’s transportation architecture across the road, rail, maritime and aviation sectors, while identifying solutions to the bottlenecks hindering seamless movement of passengers and cargo.

Discussions will also focus on multimodal transport integration, investment opportunities within the logistics and supply chains, digital transformation, infrastructure financing, and public-private partnership initiatives.

READ ALSO:

TCAN Chairman, Mr Tola Adenubi, said the summit would equally review regulatory frameworks needed to improve operational efficiency and enhance Nigeria’s competitiveness in the global logistics industry.

According to him, the confirmation by Oyetola, Obayendo and Opeifa underscores the Federal Government’s commitment to engaging stakeholders in driving reforms that will reposition the nation’s transport sector.

Oyetola is expected to deliver the keynote address, outlining the Federal Government’s agenda for the marine and logistics sector, ongoing reforms, infrastructure investments and policies aimed at improving intermodal connectivity, boosting port efficiency and strengthening the country’s logistics value chain.

Obayendo will provide insights into the transportation and logistics components of President Bola Ahmed Tinubu’s Renewed Hope Agenda, highlighting key reforms and their impact on national economic development.

Opeifa, on his part, will present updates on the railway modernisation programme, operational improvements, rail safety, passenger and freight services, and the expanding role of the Nigerian Railway Corporation in supporting economic growth.

Expressing optimism over the calibre of participants, Adenubi said the summit would offer stakeholders a rare opportunity to engage directly with key government officials shaping Nigeria’s transportation future.

“We are delighted that the Honourable Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, the Technical Adviser to the Vice President on Transportation, Logistics and Innovation, Dr Segun Obayendo, and the Managing Director of the Nigerian Railway Corporation, Dr Kayode Opeifa, have accepted our invitation to participate in the 2026 TCAN Summit.

“Their presence will provide participants with first-hand insights into the Federal Government’s vision for the transport sector while creating opportunities for meaningful engagement between policymakers, industry operators and the media,” he said.

Beyond the keynote sessions, the summit will feature presentations by government agencies and leading players across the transportation and logistics value chain, alongside networking sessions designed to strengthen collaboration across the road, rail, maritime, aviation and multimodal transport sectors.

As part of the event, TCAN will also recognise individuals and organisations that have made significant contributions to the growth of Nigeria’s transport industry through its “Champion of Transport Industry Development” compendium.

The summit is scheduled to hold on September 24, 2026, at Radisson Hotel, Ikeja, Lagos.

Oyetola, VP’s aide, Opeifa to drive discussions at 2026 TCAN Transport Summit

Business

Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Published

4 days ago

July 25, 2026

Trends Admin

Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Millions of Nigerians are facing renewed economic hardship as the petrol price has risen to as high as N1,400 per litre in several parts of the country, forcing transport operators to increase fares and adding further pressure to the rising cost of living.

The latest increase follows a sharp rise in global crude oil prices, which has driven up the cost of refined petroleum products and triggered fresh adjustments in ex-depot and retail pump prices across Nigeria’s downstream petroleum market.

Industry data obtained from petroleum marketers showed that several depots in Lagos, Warri and Calabar reviewed their ex-depot prices upward after international oil prices surged.

In Lagos, A.A. Rano increased its ex-depot price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time adjusted theirs to about N1,275 per litre. However, EMADEB marginally reduced its price from N1,278 to N1,274 per litre.

The development coincided with the resumption of Premium Motor Spirit (PMS) loading by the Dangote Petroleum Refinery, which returned to naira transactions after temporarily suspending gantry loading. At the same time, the refinery increased its ex-depot price from N1,075 to N1,215 per litre, representing a 13.02 per cent increase.

The refinery had suspended truck and coastal loading after introducing a dollar-denominated pricing structure, citing challenges in sourcing sufficient crude oil under the Federal Government’s naira-for-crude initiative. Although naira sales have resumed, the higher ex-depot price has pushed retail prices upward across the country.

Consequently, motorists are now buying petrol at between N1,260 and N1,400 per litre, depending on location and marketer, with independent filling stations recording some of the highest pump prices.

The increase has had an immediate impact on transportation costs.

READ ALSO:

In the Federal Capital Territory (FCT), commuters said they now spend significantly more on daily transportation, while commercial drivers explained that rising fuel costs have made fare adjustments unavoidable to remain in business.

Some commercial transport operators in Lagos have also raised fares on major routes, although competition among bus operators has limited uniform increases across the city.

In Kwara State, major marketers now sell petrol for between N1,255 and N1,305 per litre, while pump prices have climbed to around N1,350 per litre in Kaduna.

Motorists in Adamawa State are paying between N1,360 and N1,370 per litre, while independent filling stations in Maiduguri now dispense petrol for between N1,370 and N1,390 per litre.

The rising cost of fuel has also affected interstate travel. Operators on the Maiduguri–Kano route have increased transport fares from N20,000 to N25,000, citing higher fuel costs and increased vehicle operating expenses.

However, transport fares have remained relatively stable in parts of Ibadan and Kano, where operators say they are closely monitoring market developments before making further adjustments.

The Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Borno State, Mohammed Kuluwu, said frequent fluctuations in petrol prices have created uncertainty in the downstream sector, making many marketers reluctant to load products because of fears of sudden price changes.

Energy law expert Prof. Dayo Ayoade of the University of Lagos attributed the latest increase to the realities of Nigeria’s deregulated petroleum market.

According to him, domestic fuel prices are now largely determined by international crude oil prices, foreign exchange movements and market forces, while the Petroleum Industry Act (PIA) significantly limits direct government intervention in pricing.

He added that challenges affecting the implementation of the Federal Government’s naira-for-crude policy have reduced the volume of crude supplied to local refineries, contributing to higher refining and distribution costs.

Oil and gas analyst Abdullahi Shehu called on the Federal Government to expand crude oil supply to domestic refineries under favourable terms, arguing that stronger local refining capacity could help moderate petrol prices and reduce dependence on imported refined products.

Similarly, economist and energy expert Dr. Marcel Okeke warned that sustained increases in fuel prices could further accelerate inflation, raise production and logistics costs for businesses and worsen the financial burden on households already struggling with rising food prices and other essential expenses.

Economic analysts note that because petrol remains the primary fuel powering transportation, logistics and many small businesses, continued increases in pump prices are likely to translate into higher prices for goods and services nationwide, thereby deepening inflationary pressures.

The latest fuel price adjustment comes at a time when many Nigerians are already contending with high inflation, rising electricity costs and increased household expenses, raising concerns that further increases in transportation costs could negatively affect businesses, workers and consumers if global oil prices remain elevated.

Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Business

Nigerians May Pay More for Fuel as Global Oil Prices Surge Above $100 Per Barrel

Published

5 days ago

July 24, 2026

Trends Admin

Nigerians May Pay More for Fuel as Global Oil Prices Surge Above $100 Per Barrel

Nigerians face the prospect of higher petrol prices, increased transport fares, and renewed inflationary pressure as global crude oil prices have surged above $100 per barrel for the first time since May amid escalating conflict in the Middle East.

The surge represents about a 6.77 per cent increase on Thursday following several days of gains as the United States stepped up military strikes against Iran. Brent crude, the international benchmark against which Nigeria’s oil is priced, climbed above $100 per barrel on Thursday, July 23, 2026, reaching $100.69 after surging more than seven per cent in a single day. By 4:40 p.m. WAT, Brent crude had risen 7.43 per cent to $101.10 per barrel, while U.S. benchmark West Texas Intermediate (WTI) gained 6.77 per cent to trade at $92.71 per barrel.

The latest price rally has been driven by threats to two of the world’s most strategic shipping routes: the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes, and the Bab el-Mandeb Strait in the Red Sea. The Iran-aligned Houthi militia in Yemen has opened a new front by targeting vessels carrying Saudi oil in the Bab el-Mandeb Strait after declaring a naval blockade on shipments from Saudi Arabia. The Houthi group claimed to have attacked two Saudi oil tankers, identified as ENCELIA and LAYLA, using ballistic and cruise missiles as well as drones. The attacks have lifted global benchmark prices by about 20 per cent over the past two weeks. Several oil tankers have altered their routes, with at least five changing course in the Red Sea. The disruption has been compounded by other supply constraints. Kazakhstan has reportedly begun cutting oil production after drone attacks disrupted tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea. Indian state refiners have suspended Iraqi crude loadings because of shipping risks around Hormuz, while Russian fuel exports remain constrained following months of attacks on refinery infrastructure. Strategic petroleum reserves released by several governments since the conflict escalated have reduced emergency stockpiles, commercial inventories have continued to decline, and China has increasingly relied on previously accumulated reserves rather than fresh imports. Goldman Sachs has warned that Brent crude could climb to as high as $120 a barrel by the end of the year if exports through the strategic waterway remain disrupted.

READ ALSO:

The surge in crude oil prices has already translated into higher costs at Nigerian pumps. The impact is already beginning to reflect in Nigeria’s downstream market, with prices at filling stations in Lagos and its environs currently ranging between N1,300 and N1,400 per litre, depending on location. In Abuja, pump prices have increased from about N1,155 per litre to approximately N1,350 per litre, adding further pressure on households and businesses already grappling with elevated living costs. Dangote Petroleum Refinery resumed gantry loading of Premium Motor Spirit (PMS) in naira on Thursday after a week-long suspension, while raising its ex-depot petrol price to N1,215 per litre, up from the previous N1,075 per litre, representing a 13.02 per cent increase. The refinery had suspended gantry and coastal loading on July 15 after introducing a dollar-denominated pricing template for refined petroleum products, a move that disrupted fuel supply and forced marketers to source products from private depots. Fresh loading data obtained from petroleum marketers showed an upward movement in ex-depot prices across Lagos, Warri and Calabar. In Lagos, A.A. Rano increased its ex-depot price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time hiked their rates to N1,275. The spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that loading had resumed across depots, although it remains unclear whether purchases directly from the Dangote Refinery are now being settled in dollars.

The rise in crude oil prices presents a mixed picture for Nigeria. The 2026 Federal Government budget was benchmarked at a crude oil price of $64.85 per barrel**, daily production of 1.84 million barrels, and an exchange rate of N1,400 to the US dollar. At current prices, Nigeria is earning about **$35 more per barrel than projected, potentially generating billions of naira in additional revenue if production and exports remain stable. However, revenue gains may be moderated by lower-than-budgeted output. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), current oil production stands at about 1.7 million barrels per day, including condensate. More importantly, economists caution that the fiscal windfall may be outweighed by the rising cost of living, as Nigerians bear the burden of higher fuel prices under the deregulated downstream petroleum market. The Centre for the Promotion of Private Enterprise (CPPE) has warned that domestic refining alone may not significantly reduce petrol prices, as crude oil feedstock is priced using international benchmarks and denominated in US dollars.

Transport fares have already begun to rise across the country as a result of the fuel price increases. In Abuja, residents have expressed frustration over the latest increase, saying transportation costs now consume a significant portion of their earnings. A civil servant told Daily Trust: “My salary has not changed, but I now spend much more just getting to work and back. It is becoming impossible to survive in Abuja.” Any increase in petrol prices is expected to trigger fresh hikes in transport fares, with knock-on effects on the prices of food, manufactured goods, and other essential commodities across the country. The International Energy Agency (IEA) has warned that refined fuel markets remain tighter than crude supplies, meaning that markets for refined oil products, including diesel and gasoline, are considerably tighter than those for crude. IEA Executive Director Fatih Birol warned that a “full and unconditional reopening of the Strait of Hormuz” would be essential to prevent a further deterioration in global energy security.

Commenting on the development, Managing Director of Petroleumprice.ng, Jeremiah Olatide, said the downstream sector has become increasingly volatile. “With the resumption of loading by Dangote Petroleum Refinery in naira at N1,215 per litre on Wednesday, we expected fuel importers to reduce prices, and some actually did. However, the sudden spike in crude oil prices due to the Middle East crisis has disrupted that trend. We should expect more price instability in the coming weeks,” he told Vanguard. National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, noted that while depots and filling stations had yet to implement widespread price increases, the impact could soon be felt across the economy. “The implications will be far-reaching for households, businesses and the wider economy once operators across the value chain adjust their prices,” he warned. Energy experts say the current situation reflects the realities of Nigeria’s deregulated petroleum market under the Petroleum Industry Act (PIA). Professor Dayo Ayoade, an energy law expert at the University of Lagos, explained that local petrol prices are now tied directly to international crude oil prices and exchange rate movements. The exposure of Nigeria’s local PMS markets to the vulnerabilities of an oil shock and increasing prices due to the US-Iran war will be ongoing. So long as the conflict continues, the price will go up, and Nigeria will be unable to protect itself against that higher cost.