Several filling stations in Lagos on Monday increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, following a rise in the ex-depot price due to the recent surge in international crude oil prices.
Crude oil prices had spiked sharply last week but dipped slightly on Monday ahead of the inauguration of U.S. President Donald Trump.
Dangote Refinery Clarifies Price Hike
On Sunday, Dangote Refinery attributed the recent increase in PMS prices to fluctuations in international crude oil prices.
A statement from the refinery explained, “Since crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product.”
Dangote disclosed that its partners, including Ardova, Heyden, and MRS Holdings, will sell petrol nationwide at a retail price of ₦970 per litre.
Checks on Monday revealed that several filling stations, including MRS, had adjusted their prices to ₦970 per litre.
NNPCL Stations Witness Long Queues
Despite the price adjustments, Nigerian National Petroleum Company Limited (NNPCL) stations in Lagos continued selling PMS at ₦925 per litre, attracting long queues.
Daily Trust observed queues at NNPCL stations along Fadeyi on Ikorodu Road, while some NNPCL outlets, such as those at Ojodu Berger, were not dispensing fuel.
Motorist Segun Joshua explained, “Only NNPCL is selling at the lowest price at the moment, hence the queues in most of their stations.”
However, long queues were also observed at MRS stations, including one along Ahmadu Bello Way, Victoria Island.
Oil Prices React to Trump Inauguration
Oil prices fluctuated on Monday as traders anticipated the inauguration of U.S. President Donald Trump.
Brent crude for March delivery fell 1.5%, trading at $79.66 per barrel at 11:20 a.m. ET, while WTI crude for February delivery dropped 1.8%, settling at $76.46 per barrel.
Following Trump’s inauguration, Brent crude rose marginally to $80.05 per barrel.
The previous administration under Joe Biden had intensified sanctions on Russia, heavily penalizing its vessels. However, the direction of Trump’s administration remains unclear.
PVM oil analyst Tamas Varga told Reuters, “Given the performance of the market so far this year, it is reasonable to see some people take profit before the Trump administration’s modus operandi becomes clearer.”