Nigerians could soon pay as much as N930 per litre for petrol as negotiations continue over the naira-for-crude sales between the federal government, through the Nigerian National Petroleum Company (NNPC) Limited, and local petroleum refiners.

BusinessDay analysis showed that the ex-depot price of petrol stood at an average of N870 per litre on Monday noon, an increment of more than N20 in one week.

Data showed that Pinnacle, AIPEC, Rainoil Lagos and WOSBAB had the latest change in price and it stood at N870 Monday noon.

On the back of this development, petroleum marketers have said that petrol prices at the pump could rise to at least N930 per litre across the country.

“For premium motor spirit (PMS), it is about N10 to N20 as some sell N880 for probably old stock… Ideally, another N25 added to these prices will be the pump price,” said Jide Pratt, COO of AIONA.

Zarma Mustapha, deputy president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said prices will vary across the country as there are other costs involved in getting refined petroleum products to the pump.

He said, “You have other costs that you are supposed to add to your margin and it depends on where your location is. For example, using Abuja, the cost of transportation per litre is about N45 or so.

“If you load at N870 and you add N45, that means the product will land in Abuja at N915 Naira. Then you add your margin of N15 to N20. So, that’s basically how the dynamics work.”

Earlier, the Nigerian National Petroleum Company (NNPC) said it is in negotiations with the Dangote refinery about extending the naira-for-crude sales arrangement, which ends this month.

The six-month programme has seen NNPC sell Dangote almost 40 million litres of crude in naira since October 2024, NNPC said. The programme has also involved Dangote selling petrol and diesel to the domestic market in naira.

According to sources familiar with the matter, it has been “a good arrangement until now by reducing petrol prices, national inflation and by stabilising the naira.”

“Our stand is that we still advise the government that it is too early to stop the experiment,” said Billy Gillis-Harry, national president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

“We should be able to still allow the naira-for-crude sales to go on at least for another six months and see what that will yield.”

The PETROAN boss further urged local refiners to apply human face in doing business and be respectful to laws and orders.

“We must work to salvage the country together. At the end of the day, that’s the most important thing – national interest.” (BusinessDay, but headline rejigged)