Nigerians Pay N44 Extra Per Litre as Retailers Defy Falling Depot Prices – Full Report

Despite significant reductions at major petroleum depots, petrol pump prices remain stubbornly high across Nigeria, raising fresh concerns about pricing transparency and market practices in the downstream sector.

LAGOS – There is a growing disconnect between wholesale and retail petrol prices in Nigeria, leaving motorists questioning why pump prices remain elevated despite sharp drops at depots. Industry data for September 8, 2026, revealed that Premium Motor Spirit (PMS) , commonly known as petrol, was selling at depots in Lagos for between N1,266 and N1,280 per litre, with some operators recording significant price cuts during the day. Yet at filling stations across Lagos and Abuja, consumers are still paying between N1,310 and N1,325 per litre – a gap of as much as N44 that industry watchers say underscores persistent inefficiencies and potential profiteering in the distribution chain.

A mid-day depot price report for Tuesday showed that Dangote Refinery and Pinnacle quoted N1,266 per litre, while MRS sold at N1,267. Other depots including Aiteo, Integrated, and Sahara priced at N1,270, with Ascon and NIPCO at N1,280. The data also revealed that several depots lowered their prices during the day. Integrated and Sahara in Lagos cut PMS prices by N9 per litre each to N1,270, while Lister reduced its price by N3 to N1,277. In Warri, Bulk Strategic, Liquid Bulk, and Masters reduced prices by N10 per litre, while Matrix cut its rate by N5. Rain Oil recorded the largest reduction, slashing its price by N20 to N1,280.

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Despite these downward adjustments, the relief is yet to reach motorists. The lowest reported retail price in Lagos stood at N1,310 per litre, while many filling stations still sell at N1,325 and above. In Abuja, prices range between N1,300 and N1,345, according to recent checks. This gap raises critical questions: why are savings at the depot level not being passed on to consumers?

Market operators point to several factors that widen the divide between wholesale and retail prices. “The depot price is only one component of the final price paid by the consumer,” an industry source said, citing transportation, storage, handling, and station operating costs as additional burden on final pump prices. Another downstream operator noted that not every station buys at the same price or operates with the same cost structure. “Location, transportation and other expenses all affect the pump price,” the operator explained. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also attributed persistent price volatility to crude oil sourcing, single-source domestic refining, and logistics costs. The regulatory body’s spokesperson, George Ene-Ita, described the issues as “knotty,” adding that petrol prices have been fully deregulated and are subject to market forces.

Adding to the complexity, Brent crude recently surged past $95 per barrel amid escalating geopolitical tensions, which has pushed up replacement costs for imported fuel and influenced domestic pricing decisions. Dangote Refinery raised its gantry price three times in eight days in late August, adding N100 per litre – an 8.6% increase – following a sharp rise in international crude costs. This triggered retail price hikes across the country, with some northern states seeing petrol sell for as high as N1,400 per litre.

The NMDPRA has intensified consumer protection measures, warning filling station operators against under-dispensing and engaging with stakeholders to promote fair pricing. However, the authority has also reaffirmed that the market remains fully deregulated, meaning pump prices are determined by market forces rather than government directives. Industry associations including the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have called on regulators to clamp down on anti-competitive pricing practices. PETROAN National President Billy Gillis-Harry emphasised that retailers are simply passing on the costs they incur from suppliers. “If we buy N1,500, we must still try to make minimal markup to be able to pay for the cost of finance, cost of services, cost of logistics, cost of overhead,” he said.

Industry watchers are divided on whether the recent drop in depot prices will eventually translate into lower pump prices. “If depot prices continue to fall, consumers should begin to see some relief at the filling stations, provided the savings are transmitted through the distribution chain,” a market source noted. The Federal Government has ruled out a return to the subsidy regime, with Minister of Information Mohammed Idris warning that restoring subsidy would reverse economic gains and erase N15.8 trillion in savings mobilised between June 2023 and December 2025. Instead, state governors are promoting a nationwide Compressed Natural Gas (CNG) transit programme as a long-term solution to reduce transportation costs and ease the burden on Nigerians. For now, motorists continue to bear the brunt of a market in transition – where depot prices fall, but pump prices remain stubbornly high.