Petrol Hits N1,900/Litre at Depots as Prices Surge Despite NNPC Cut

Reported by Ariajegbe Sylvia Esezobor 

The Nigerian National Petroleum Company Limited’s petrol discount, announced barely a week ago as a measure to ease the burden of high fuel costs on Nigerians, has collided with a harsh market reality: depot prices have surged to as high as N1,900 per litre in Port Harcourt, while prices also rose in Lagos, Warri and Calabar, in a development that threatens to erase the temporary relief the discount was designed to provide.

A review of depot prices on Friday, October 9, 2026, showed that NIPCO led the increases in Port Harcourt, raising its Premium Motor Spirit price by N170 per litre to N1,900 from N1,730. Six other depots — African Terminal, Ascon, Eterna, Gulf Treasure, Ibachem and Ibeto — also raised their prices from N1,750 to N1,900 per litre. Duport and Integrated increased their prices to N1,806 per litre from N1,750, representing an increase of N56 per litre. In Lagos, Masters raised its petrol price to N1,350 per litre from N1,303, while Matrix increased its price to N1,360 from N1,330. Sigmund and T.S.L raised their prices to N1,350 per litre from N1,300 each, while NIPCO increased its price to N1,350 from N1,326. In Calabar, Matrix raised its price to N1,370 per litre from N1,315, and in Warri, Keonamex, Matrix, Nepal and Parker increased their prices to N1,360 per litre from N1,315 each, while Optima raised its price to N1,360 from N1,330.

The surge in depot prices coincided with an increase in international crude oil prices, as Brent crude climbed to $104.50 per barrel from $104.28, while the US benchmark, West Texas Intermediate, rose to $91.73 from $91.49. The OPEC Basket rose to $109.50 per barrel from $108.59, and the Indian Basket climbed to $121.10 per barrel. The correlation between international crude prices and domestic depot costs reflects the extent to which Nigeria’s downstream sector remains exposed to global market movements, despite the country’s status as a major oil producer and the recent expansion of domestic refining capacity.

The contrast between depot and pump prices could not be starker. At the retail end, NNPC Limited sold petrol at N1,360 per litre at its filling stations in Lagos and surrounding areas, while MRS Oil Nigeria Plc sold the product at N1,338 per litre and 11 Plc sold at N1,338.80. Independent marketers charged between N1,368 and N1,400 per litre, depending on location. The divergence between wholesale and retail pricing highlights the fragmented nature of Nigeria’s petrol market and the varying cost structures that different players in the supply chain must navigate. Some retailers are maintaining lower rates even as wholesale costs rise, but the pressure on margins could force them to adjust their prices in the coming days if the depot surge persists.

The NNPC discount itself has been extended until October 31, 2026, following its introduction on October 1 to commemorate Nigeria’s 66th Independence Anniversary. The discount is limited to NNPC Retail stations and applies only to customers who pay through the company’s mobile application, a condition that has restricted its reach and drawn criticism from industry stakeholders. NNPC’s Chief Corporate Communications Officer, Andy Odeh, insisted that the measure is customer relief and not a return of fuel subsidy, and that it is funded from the company’s retail margin rather than from the Federation Account. The company has said the initiative is designed to support the Federal Government’s efforts to cushion the impact of rising fuel costs, particularly for public transport operators.

The diesel market has also recorded significant increases, adding to the cost pressures facing businesses and households. In Warri, Rain Oil and Matrix raised their Automotive Gas Oil prices by N180 per litre to N1,900 from N1,720 each. In Port Harcourt, Dangote increased its diesel price to N1,720 per litre from N1,702, while Masters raised its price to N1,825 from N1,788. The increases could add to operating costs for manufacturers, transport operators and other businesses that rely on diesel for power generation and transportation, particularly if the higher prices persist. Diesel is the primary fuel for many Nigerian businesses, and rising costs are typically passed on to consumers through higher prices for goods and services.

The depot surge is unfolding against the backdrop of the Federal Government’s proposal to negotiate a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol, a measure announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on October 8. Under the proposed arrangement, refiners and importers would absorb shortfalls during price spikes, with the government maintaining that the mechanism would stabilise pump prices without restoring subsidies. The gap between the proposed N1,350 ceiling and the N1,900 depot prices recorded in Port Harcourt illustrates the scale of the challenge the government faces in enforcing a price cap in a deregulated market where supply costs are driven by international crude prices, exchange rates and logistics expenses.

The timing of the surge is politically sensitive. The 2027 general elections are less than four months away, with the presidential and National Assembly elections scheduled for January 16, and the governorship and state assembly elections for February 6. President Bola Ahmed Tinubu is seeking a second term on the All Progressives Congress platform, while former Vice President Atiku Abubakar of the African Democratic Congress, former Anambra Governor Peter Obi of the Nigeria Democratic Congress and Oyo State Governor Seyi Makinde of the Allied Peoples Movement are among the major challengers. Atiku has dismissed the NNPC discount as a temporary intervention that does not address the structural causes of high fuel prices, asking what happens when the discount expires. The NDC has described the measure as tokenism, and the Nigeria Labour Congress has given the government a two-week ultimatum to reduce petrol prices and begin minimum wage negotiations. The depot price surge provides ammunition to critics who argue that the government’s relief measures are inadequate and that Nigerians will continue to face high fuel costs regardless of temporary interventions.

For motorists and commuters, the surge in depot prices is a warning that the relief offered by the NNPC discount may be short-lived. Pump prices could rise in the coming days as independent marketers adjust their rates to reflect the higher cost of stock, and the government’s proposed N1,350 ceiling could prove difficult to enforce if international crude prices remain elevated. For the NNPC, the challenge is to sustain its discount while absorbing the pressure of rising supply costs. For the government, the episode underscores the difficulty of managing fuel prices in a deregulated market without resorting to subsidies. As Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, put it, Nigeria’s downstream petroleum sector will continue to respond to developments in the global oil market, and domestic price increases could also reflect supply conditions, transportation expenses and marketers’ pricing decisions. The coming weeks will determine whether the depot surge is a temporary spike or the beginning of a sustained upward trend that could undermine the government’s efforts to ease the cost of living ahead of the 2027 elections.

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