Petrol Prices Soar Past ₦930/Litre, May Hit ₦1,000 Without Naira-for-Crude Deal Extension

In the past days, petrol prices have surged from approximately N860 per litre to over N930 per litre, with industry players warning that the price could hit N1,000 per litre if the naira-for-crude deal is not extended, reports say.

Marketers attribute the sharp increase to concerns over the agreement’s expiration and the potential shift to dollar-denominated transactions for crude supply.

A visit to MRS filling stations, a partner of Dangote Refinery confirmed the price hikes. At the MRS station along Kubwa Expressway in Abuja, petrol is now selling for N930–N950 per litre, an increase of N70–N80 per litre from the previous price of N860–N880 per litre in Lagos and Abuja, DailyPost reported.

It will be recalled that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira, citing difficulties in balancing its crude oil purchase obligations with sales proceeds. The refinery stated that the volume of petroleum products sold in naira had surpassed the naira-equivalent value of crude oil received, forcing it to prioritise transactions in foreign currency.

The refinery’s decision had sparked speculation about the fate of the naira-for-crude agreement, which was introduced to stabilise fuel prices and enhance local refining capacity. Under the deal, NNPC has supplied over 48 million barrels of crude to Dangote Refinery, with total deliveries exceeding 84 million since 2023.

The uncertainty surrounding the deal is raising concerns over potential disruptions in domestic fuel supply and inflationary pressures, especially if Dangote Refinery shifts entirely to dollar-based payments. The NNPC denied terminating the agreement, but negotiations on a new framework remain unresolved.

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