Petrol Prices Set to Rise as Importers Increase Depot Price to ₦1,350 Per Litre

Nigerians may soon pay more for Premium Motor Spirit (PMS), commonly known as petrol, as fuel importers have increased the depot price of the product from ₦1,230 per litre to ₦1,350 per litre, signalling another round of pump price adjustments across the country.

Industry sources confirmed that marketers have been notified of the revised ex-depot price, which is expected to take effect from Friday, July 17, 2026.

The increase is expected to affect filling stations that depend on imported petroleum products, with retailers likely to transfer the higher procurement costs to consumers.

The latest adjustment comes amid rising costs associated with imported fuel cargoes and follows the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)'s issuance of fresh fuel import licences for the third quarter of 2026.

The new licences permit selected petroleum marketers to import petrol and diesel between July and September as part of efforts to ensure adequate supply in the domestic market.

According to an Argus market intelligence report, approvals to import petrol were granted to AA Rano, AYM Shafa, Bono, NIPCO and Pinnacle, while AA Rano, AYM Shafa, Bono, Matrix and Pinnacle received licences to import diesel during the same period.

Despite expectations that additional import licences would stimulate competition and help moderate domestic fuel prices, industry stakeholders say the latest increase suggests global market conditions are overriding those expectations.

A market source said the upward adjustment could undermine the objective of expanding import participation in the downstream sector.

"The expectation was that additional import licences would encourage competition and provide consumers with more pricing options. Instead, importers are announcing higher prices that will ultimately be passed on to Nigerians," the source said.

Another petroleum products marketer noted that retailers purchasing imported fuel would have little option but to reflect the increased costs at their filling stations.

"Retailers buying imported products have little choice but to pass the increase onto consumers. That is how the market works," the marketer explained.

The marketer, however, noted that petrol supplied by the Dangote Refinery remains relatively cheaper than imported products, potentially providing some pricing relief for marketers sourcing directly from the refinery.

The latest increase also comes against the backdrop of renewed tensions involving the United States and Iran, which have disrupted shipping activities through the Strait of Hormuz, one of the world's most strategic oil transit routes. The disruption has contributed to higher freight costs and increased prices for imported petroleum products globally.

Should the new depot price take full effect across the market, motorists and businesses are likely to face another increase in fuel costs, with broader implications for transportation, logistics and the prices of goods and services across the economy.

Industry observers will also be watching whether domestic refiners, particularly the Dangote Refinery, maintain lower ex-depot prices that could cushion the impact of rising import costs and intensify competition in Nigeria's downstream petroleum market.