Fuel queues return in Lagos as petrol prices cross N1,000/litre

By: Amarachi Okonkwo

Rising petrol prices have triggered fresh fuel queues across Lagos, with motorists scrambling for cheaper supplies at stations where Premium Motor Spirit still sells below N1,000 per litre.

A market survey across major retail stations on both the Lagos mainland and island showed that most outlets have adjusted their pump prices above N1,000 per litre following recent upstream price changes, triggering a rush by motorists seeking relatively cheaper fuel.

Private car owners and commercial drivers were observed lining up at stations operated by MRS along the Lagos–Ibadan Expressway, where petrol was selling at about N937 per litre, one of the lowest rates currently available in the market.

Other marketers have also revised their prices upward. Stations operated by Eterna Plc were selling petrol at about N1,040 per litre, while North West Petroleum & Gas Company Limited and Fatgbems Petroleum Company Limited adjusted their pump prices to around N1,030 per litre. Retail outlets under the Mobil brand were dispensing at slightly lower levels, averaging about N1,025 per litre.

Despite the growing demand, some filling stations were not dispensing petrol as of early Saturday, raising concerns about potential supply disruptions. Several outlets operated by the Nigerian National Petroleum Company Limited (NNPC Ltd) remained shut during the early hours of the day.

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For instance, the NNPC station at OPIC Estate was closed as of 7:00 a.m., although it was unclear whether the shutdown was due to product shortages or operational issues. However, other NNPC retail stations at Iwaya, Bariga and parts of Ikoyi were dispensing petrol at N1,050 per litre as of noon on Saturday.

Some TotalEnergies stations along the Lagos–Ibadan Expressway were also not selling petrol at the time of filing this report, while others recorded only light traffic from motorists.

The developments come amid rising global crude oil prices, which climbed above $80 per barrel earlier in the week, prompting upward adjustments across Nigeria’s downstream petroleum market.
Earlier, Dangote Petroleum Refinery increased its ex-depot price of petrol from N774 to N874 per litre, representing a N100 hike that has begun to reflect in retail pump prices nationwide.

Energy economists warn that the upward trend could push petrol prices closer to N1,000 per litre or beyond if global oil prices remain elevated.

Chief economist at SPM Professionals, Paul Alaje, said higher crude oil prices typically translate into increased costs for refined petroleum products.

“As crude oil prices rise, the cost of PMS, diesel and Jet-A1 will also increase. About nine per cent has already added to the cost of PMS in Nigeria, and by the end of April, if the conflict is not properly managed, prices could reach N1,000 or more,” he said.

Oil rallies amid Middle East tensions

Global oil markets recorded strong gains during the week as investors monitored escalating geopolitical tensions involving the United States, Israel and Iran.

The conflict has raised concerns about potential supply disruptions, particularly around the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of the world’s seaborne oil supply is transported.

Iran has reportedly launched retaliatory missile and drone strikes across several parts of the Middle East, including Lebanon, Saudi Arabia, Qatar and Dubai, while warning it could disrupt global energy supplies.

The escalation pushed crude oil prices up by nearly 14 per cent earlier in the week before moderating slightly. European natural gas prices also surged by almost 40 per cent after QatarEnergy announced a temporary halt in liquefied natural gas production following attacks on its facilities.

Market analysts caution that prolonged conflict and continued disruptions to energy supply chains could drive global energy prices higher, potentially worsening inflationary pressures across economies and complicating efforts by central banks to stabilise prices.