Nigerians will now pay more for petrol as the Nigerian National Petroleum Company Limited (NNPC Ltd) has raised the pump price of Premium Motor Spirit (PMS) to N915 per litre in Lagos and Abuja — the latest increase driven by rising global crude prices and Middle East instability.
This new price represents a 6.4% jump from the N860 per litre that some NNPC stations offered back in March 2025, when the pump price was temporarily reduced from N945 per litre due to lower supply costs.
Nairametrics confirmed on Monday that NNPC filling stations in Lagos have already adjusted their meters to reflect the new N915 per litre price, matching increases also seen in Abuja.
This fuel price hike comes as part of Nigeria’s ongoing shift away from petrol subsidies. Since mid-2023, local petrol prices are no longer fixed but are instead determined by market forces, including global crude oil prices, exchange rates, and domestic refining capacity.
The latest increase was triggered after Dangote Refinery raised its depot price, forcing NNPC Ltd to adjust rates in order to stay competitive and minimize financial losses.
A weaker naira and escalating global crude prices — partly driven by tensions in the Middle East — are also contributing to the rising petrol price in Nigeria.
Energy analyst Jide Pratt explained that Iran’s status as a major oil producer directly impacts global crude prices. Following the recent bombings and regional instability, Brent crude briefly surged to $78 per barrel, before settling around $73.
Pratt warned that if the conflict escalates — particularly if Iran acts on threats to close the Strait of Hormuz, a vital oil shipping route — global crude prices could skyrocket, potentially reaching $150 per barrel. This would further increase the cost of imported petrol in Nigeria and globally.
For now, fuel prices in Nigeria will likely remain unstable unless the naira strengthens, crude oil supply stabilizes, and domestic refining capacity improves.
While Dangote Refinery is already playing a significant role in fuel supply, further expansion of local production and competition in the sector could eventually help stabilize — or even lower — the pump price of petrol.
What Nigerians Should Know:
- Earlier this year, some NNPC stations briefly reduced petrol prices from N945 to N860 per litre due to temporary improvements in supply.
- Tensions in the Middle East, especially Iran’s response to US-led airstrikes, continue to drive oil price volatility.
- Iran’s parliament has approved plans to potentially close the Strait of Hormuz — if implemented, this could spike crude prices worldwide.
- MRS Oil Nigeria Plc, one of Dangote Refinery’s key distributors, also raised its petrol price from N885 to N925 per litre in Lagos, effective Saturday, June 21, 2025 — a move reflecting the broader market reaction to soaring global oil prices.
As Nigerians brace for yet another increase in fuel prices, the impact on the cost of living is expected to worsen. With the Middle East crisis deepening and the naira still under pressure, motorists and businesses should prepare for more fuel price adjustments in the coming weeks.
