Fuel depots across Nigeria have increased prices for petrol and diesel following a sharp rise in landing costs. A weakening naira and higher global crude oil prices continue to raise the cost of fuel imports, prompting a wave of adjustments from major downstream suppliers.
Crude Oil Price, Weak Naira Inflate Landing Costs
As of 12 May 2025, Bonny Light crude traded at $67.55 per barrel, up from $64.57 the previous week. Brent crude also climbed to $66.37 per barrel on 14 May. Combined with the weakened naira on the Nigerian Foreign Exchange Market (NFEM), these market shifts have pushed landing costs higher.
According to MEMAN, the current landing cost for Premium Motor Spirit (PMS) now stands at ₦882.87 per litre, while Automotive Gas Oil (AGO) is ₦968.12 per litre. These increases directly affect depot and wholesale prices across the country.
Petrol Prices Climb at Key Depots
Petrol (PMS) prices recorded significant increases across major depots between 9 and 12 May:
- Lagos (Rainoil): ₦839 ➝ ₦870
- Warri (Matrix): ₦855 ➝ ₦890
- Calabar (Fynefield): ₦870 ➝ ₦905
- Port Harcourt (Ever): ₦866 ➝ ₦896
These increases align with the rising landing costs, which reflect import-dependent pricing tied to global oil benchmarks and forex volatility.
Diesel Prices Follow Upward Trend
Depots also adjusted diesel (AGO) prices upward:
- Lagos:
- Rainoil: ₦925 ➝ ₦970
- Ibeto: ₦920 ➝ ₦950
- Aiteo: ₦913 ➝ ₦960
- Chipet: ₦912 ➝ ₦940
- Warri:
- Matrix: ₦960 ➝ ₦975
- Taurus: ₦959 ➝ ₦974
- AYM Shafa: ₦958 ➝ ₦974
The steady rise in landing costs leaves depot operators with little choice but to pass increases along the supply chain, affecting transporters and bulk purchasers.
Marketers Struggle to Absorb Cost Hike
With refining output from local sources still limited, marketers continue to rely heavily on imports. As a result, they face mounting pressure from rising landing costs, currency instability, and global oil price fluctuations.
Unless Nigeria sees an improvement in domestic refining capacity and exchange rate stability, depot prices may keep climbing, raising the risk of further inflation in retail pump prices and across the broader economy.