Petrol prices set to rise as importers hike depot rate to N1,350

Petrol pump prices across Nigeria are headed upward after importers announced a new depot rate of N1,350 per litre, up from N1,230.

The new price takes effect today, July 17, according to industry sources. It means marketers who buy from importers will now pay more at the depot, and that cost is almost certain to be passed on to motorists and businesses in the coming days.

The hike comes just after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued fresh import licences for the third quarter of 2026. The licences cover petrol and diesel imports between July and September, with companies including AA Rano, AYM Shafa, Bono, NIPCO, and Pinnacle approved for petrol, while AA Rano, AYM Shafa, Bono, Matrix, and Pinnacle got diesel nods.

The increase also follows renewed tensions between the United States and Iran, which have disrupted shipping through the Strait of Hormuz. That has pushed up freight costs for imported fuel cargoes, and importers are passing the hit down the line.

A source in the downstream sector questioned the timing, noting that the whole point of issuing more licences was to boost competition and bring prices down.

“The expectation was that additional licences would encourage competition and give consumers better pricing options. Instead, importers are announcing higher prices that will ultimately be passed on to Nigerians,” the source said.

One marketer said retailers relying on imported fuel would have no choice but to raise pump prices.

“That is how the market works. You buy higher, you sell higher,” the marketer said.

The marketer added that products from Dangote Petroleum Refinery remain cheaper than imports, giving marketers who source locally a clear edge.

Days ago, Dangote refinery announced a switch from naira-based sales to dollar transactions, cancelling all existing naira invoices. Its new prices are $0.779 per litre for petrol, $1.087 for diesel, and $0.942 for aviation fuel. The refinery cited persistent difficulties in sourcing crude locally under the government’s naira-for-crude deal with NNPCL, forcing it to rely more on international crude purchases priced in dollars.

While the dollar switch shields Dangote from foreign exchange risks, it complicates things for marketers, who now need to secure hard currency before buying. Industry watchers say this has raised replacement costs and is already feeding into higher prices at depots and pumps.