Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms

Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms

Nigerians may soon pay more for Premium Motor Spirit (PMS) as petrol importers have concluded plans to increase the depot price of petrol from N1,230 per litre to N1,350 per litre, signalling another likely rise in pump prices across the country.

Industry sources said importers have already notified petroleum marketers of the new ex-depot price, which is expected to take effect from July 17, 2026. The increase is expected to affect independent marketers that depend on imported fuel, with many likely to adjust their retail prices to reflect the higher cost of procurement.

The planned increase comes amid mounting pressure on the global oil market following renewed tensions between the United States and Iran, which have disrupted shipping activities around the Strait of Hormuz—one of the world’s most strategic oil transit routes. The disruption has pushed up freight charges, marine insurance premiums and the landing cost of imported petroleum products, resulting in higher depot prices for importers.

Industry analysts said the latest adjustment reflects the rising cost of imported fuel cargoes rather than changes in local distribution costs. They warned that unless international crude oil prices stabilise, Nigerians could face additional increases in the price of petrol in the coming weeks.

The development also follows the issuance of fresh fuel import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the third quarter of 2026.

Under the latest approvals, selected oil marketers have been authorised to import petrol and diesel between July and September to boost fuel availability nationwide.

READ ALSO:

• Police foil N22m kidnap plot in Kwara, arrest two Togolese suspects
• 21 dead as Uganda school bus carrying pupils from study trip crashes
• Family of Slain Oyo Teacher Begs Tinubu, Makinde for Body Recovery

According to industry reports, AA Rano, AYM Shafa, Bono, NIPCO and Pinnacle received approvals to import petrol, while AA Rano, AYM Shafa, Bono, Matrix and Pinnacle were licensed to import diesel during the quarter.

Ironically, the latest depot price increase has sparked concerns among stakeholders, as the expanded import licences were expected to deepen competition and help moderate domestic fuel prices after the deregulation of the downstream petroleum sector.

A senior industry source noted that the objective of approving more importers was to create a more competitive market that would offer consumers better pricing options.

Instead, marketers say rising international procurement costs have forced importers to review their prices upward, leaving retailers with little choice but to pass the additional cost on to consumers.

According to a petroleum products marketer, filling stations sourcing products from importers cannot absorb the higher landing costs without adjusting their pump prices.

He explained that under Nigeria’s deregulated fuel market, retail prices are largely determined by acquisition costs, exchange rates, logistics expenses and prevailing international market conditions.

Despite the latest increase in imported fuel prices, marketers noted that products supplied by the Dangote Petroleum Refinery remain relatively cheaper than imported cargoes in many locations.

However, the refinery has also been affected by developments in the international oil market. Industry reports indicate that Dangote Refinery recently began pricing some petroleum products in US dollars, citing crude oil supply challenges and higher international crude prices following the suspension of the Federal Government’s naira-for-crude arrangement.

Data from the NMDPRA shows that the Dangote Refinery currently supplies the vast majority of Nigeria’s domestic petrol demand, significantly reducing the country’s dependence on imported PMS compared to previous years. Nevertheless, imported fuel remains an important source of supply, particularly for independent marketers.

Energy experts warn that continued geopolitical tensions in the Middle East and sustained increases in crude oil prices could further impact petrol prices in Nigeria, with ripple effects on transportation costs, food prices, inflation and the overall cost of living.

For millions of Nigerians already grappling with rising living expenses, the planned increase in the depot price of petrol could translate into higher transport fares, increased business operating costs and additional pressure on household budgets unless global oil market conditions improve.

Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms