Private petroleum depots across Lagos and other major fuel distribution centres have raised the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to as high as N800 per litre, signalling renewed pressure on the downstream market and heightening fears of an imminent rise in pump prices nationwide.
Findings at the weekend showed that average depot prices climbed sharply within 48 hours, tightening marketers’ margins and unsettling a market that had only recently enjoyed relative price moderation. Industry data indicated that while some depots recorded modest adjustments, others implemented steep hikes as operators repositioned ahead of anticipated supply constraints.
In Lagos, the Dangote depot, which has consistently offered the lowest rates, sold PMS at about N703 per litre on Friday, a slight increase from earlier levels. However, other private depots moved more aggressively. Eterna and Integrated reportedly raised their ex-depot prices to N800 per litre, representing a jump of over N70 per litre within two days. Aiteo and Lister also adjusted prices upwards, selling between N780 and N800 per litre.
The price surge was even more pronounced in Warri, one of the country’s critical petroleum logistics hubs. There, depot prices rose to as high as N805 per litre, driven by tighter supply lines, higher transportation costs and strategic stock repositioning by marketers anticipating scarcity.
Market analysts trace the latest development to the temporary shutdown of the petrol unit at the Dangote Petroleum Refinery, which had emerged as a major domestic supplier and a stabilising force following the removal of fuel subsidies. In December, the refinery slashed its ex-depot price significantly, forcing importers and private depot operators to sell below landing costs and absorb losses.
Commenting on the situation, the Chief Executive Officer of petroleumprice.ng, Jeremiah Olatide, said the current price adjustment reflects a calculated effort by importers to recover losses incurred during the aggressive price cuts in December. He noted that marketers were already pricing in the risk of tighter supply in January due to ongoing upgrades at the refinery.
According to him, some depot operators are holding back volumes in storage, waiting for clearer signs of supply disruption before releasing products at higher prices. He, however, cautioned that such a strategy may be short-lived, warning that the Dangote Refinery could respond forcefully once supply normalises.
Further complicating the outlook are external pressures, including volatile foreign exchange rates and rising replacement costs. Brent crude closed around $60 per barrel at the end of the week, while the naira weakened further in the parallel market, adding to the cost burden faced by import-dependent marketers.
