Private Petroleum storage facilities throughout Lagos and major fuel trade centers have increased the cost of Premium Motor Spirit (gasoline) at the depot level up to N800 per liter, Sunday PUNCH has observed.
Information gathered from petroleumprice.ng on Friday indicated that the typical price of gasoline at independent terminals rose significantly in just 48 hours, squeezing profits for sellers and fueling new worries about a potential rise in consumer fuel costs across the country.
At the Dangote depot in Lagos, where fuel prices have historically been the most competitive, PMS was priced at N703 per liter on Friday, an increase from N702.50 observed on Wednesday, December 31, 2025. Although the rise at Dangote was slight, several independent depots experienced more significant changes.
Eterna and Integrated terminals increased fuel costs to N800 per liter on Friday, up from N726 per liter at Shellplux and AIPEC during the previous part of the week, showing an increase of N74 per liter over two days.
In addition, the Aiteo and Lister stations were selling gasoline for N780 per liter, an increase from the range of N750 to N760 noted on Wednesday. This effect was particularly noticeable in Warri, one of Nigeria's major fuel distribution centers.
Although Matrix Energy and other large fuel stations priced gasoline at N800 per liter on Wednesday, the cost increased to reach up to N805 per liter by Friday, as stated in the report.
The Warri market responded more quickly because of stricter supply chains and increased shipping expenses, particularly as traders shifted quantities in anticipation of shortages.
Remember how, last December, the Dangote Petroleum Refinery cut its gasoline pump prices, lowering the ex-warehouse cost from N828 to N699 per liter? This updated pricing came into force on December 11, 2025, being the 20th fuel price change declared by the refinery this year.
Market participants attributed the sharp increase in prices to the closure of the gasoline facility at the Dangote Refinery, which had lately emerged as a key local provider of PMS, contributing to stabilizing costs after the elimination of fuel subsidies.
In comments, Jeremiah Olatide, the CEO of petroleumprice.ng, stated that the recent rise was an intentional move by importers aiming to recoup damages incurred in December.
He stated that importers faced significant challenges due to the sharp reduction in prices introduced by the Dangote Refinery, which offered gasoline at roughly N699 per liter, compelling several independent companies to sell at rates lower than their cost of delivery.
"The increase in prices is an intentional action taken by importers to recover their losses following the significant drop in rates caused by the Dangote Refinery in December," Olatide stated.
He mentioned that advertisers are already considering possible shortages in January because of the continuous upgrades at the Dangote Refinery, an event they think might restrict local supply for a short period.
"Importers believe there could be supply limitations in January due to the refinery's facility renovation, and they view this as a chance to recover from December's losses," he mentioned.
He claims that certain warehouse managers are intentionally limiting inventory stored, hoping to sell it at rates higher than their arrival expenses when any supply interruption occurs.
"They are holding onto inventory in the tank, anticipating selling at prices higher than their purchase costs once a supply disruption occurs," Olatide stated.
Nevertheless, he warned that the approach might not last indefinitely, pointing out that the Dangote Refinery could react strongly once supplies return to normal. "We'll observe how the new pricing works, but the refinery is expected to retaliate," he mentioned.
Due to Dangote's temporary reduction in supplies, independent warehouse operators have started adjusting prices for their inventory, referencing increased replacement expenses, fluctuations in currency exchange rates, and unpredictability regarding import timelines.
A report from petroleumprice.ng also highlighted that Brent crude ended the week at $60.20 per barrel on Friday, whereas the naira kept depreciating in the black market, reaching N1,495 per dollar, up from N1,475 per dollar on Wednesday, increasing additional strain on fuel costs.
Typically, fluctuations in depot prices come before adjustments at gas stations, and experts in the sector caution that this ongoing pattern might cause retail gasoline costs to exceed N700 per liter in various cities if it continues.
Fuel suppliers stated that profit margins have been reduced due to transportation expenses, financial obstacles, and fluctuating currency values, which make it challenging to cover storage facility price hikes without changing retail fuel prices.
Following complete liberalization of the downstream oil industry, fuel costs in Nigeria are now set by market dynamics such as global crude prices, currency fluctuations, transportation expenses, and the availability of supplies.
The Dangote Refinery, with a capacity of 650,000 barrels per day, had raised expectations of price stability through local refining. However, its temporary petrol unit shutdown has exposed the fragility of supply dynamics, especially as imports remain costly.
Provided by SyndiGate Media Inc. ( Syndigate.info ).
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