Filling stations in Lagos have raised petrol prices to N930 per litre, following Dangote Refinery's decision to halt naira-based transactions. The increase comes after a breakdown in negotiations on the naira-for-crude deal, causing the refinery to source crude from international markets. Commuters and businesses face higher fuel costs.
Filling stations across Lagos have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, to N930 per litre. On Monday, the price hike was observed at several locations, including First Royal Petrol Station along College Road, Ogba, which raised its price from N860 to N930 per litre. Other stations, such as AS Sallam Petroleum and MRS Oil in Festac, also increased their prices by N70, bringing them in line with the new rate. Mobil petrol station in Ogba went further, raising its price to N935 per litre from N865.
This increase in fuel prices follows Dangote Refinery's decision to temporarily halt the sale of petroleum products in naira, citing a breakdown in negotiations regarding the naira-for-crude deal. The initial agreement between Dangote Refinery, other local refineries, and the federal government aimed to sell crude oil and petroleum products in naira to reduce the pressure on the naira and minimize the impact of foreign exchange fluctuations.
However, with the contract expiring at the end of March 2025 and no agreement reached for a new contract, Dangote Refinery was forced to source crude oil from international markets. This, combined with the refinery's reduction of its petrol ex-depot price in late February, has contributed to the rising prices at the pump in Lagos.
