Energy
Petrol’s Pump Price Skyrockets From 6 Kobo To 61,700 Kobo
The astronomical increment of the pump prices of Premium Motor Spirit (PMS) also known as, petrol has seen it rise from 6 Kobo/litre in 1970 to 61,700/litre as at August 27, 2023.
Data sourced from various online sources by Biztellers indicate that the pump price of petrol has been increased a record 29 times since the Gen Yakubu Gowon regime fixed the price at 6 kobo in 1970.
It stood at that rate for three years before the same government adjusted it to 8 Kobo in 1973.
And by 1978, when the then Gen Olusegun Obasanjo adjusted the pump price to 15 Kobo, Nigerians cried out in anguish.
The first civilian government to tinker with the pump price of petrol was the President Shehu Shagari regime, which adjusted it to 20 Kobo/litre.
That was in 1983 after Shagari had managed the 15 Kobo price it inherited from Obasanjo for more than four years, dating back to 1978.
The price stability was maintained during the tenure of the Gen Muhammadu Buhari military regime of 1984. Even his successor, Gen Ibrahim Bagandiga didn’t adjust the price until 1986, when it was adjusted to 39 Kobo/litre.
Two years down the line, Gen Babangida increased it again to 42 Kobo, before adjusting it to 68 Kobo in 1990 and 70 Kobo in 1991.
Increases in pump price of petrol had always attracted public outcry with civil society rising in one accord against the move by government.
The Interim Government led by Ernest Shonekan jerked it up from 70 Kobo to N5/litre in 1992 with the attendant public uprising enough to consume the government.
Gen Sanni Abacha shoved Shonekan aside and reduced the pump price to N3 25 Kobo, only to jerk it up to N15 in 1994 amidst fuel scarcity that threatened the economy.
When the masses rose up against the move, Gen Abacha reduced it to N11/litre in 1995, before Gen Adulsalam Abubakar who took over after the demise of Gen Abacha pegged the pump price of petrol at N25 in 1998.
The level of public outcry that greeted the move, compelled Gen Abubakar to reduce it to N20/litre 1999.
When Chief Olusegun Obasanjo was elected President in 1999, he tinkered with the pump price of petrol six times in his eight-year tenure.
He first adjusted it to N50/liter in 2002, the back to N22/litre and up to N26/litre the same year, before moving it up to N42/litre in 2003, N65/lite in 2004 and N75/litre in 2007.
Obasanjo’s successor, President Umar Yaradua, in an apparent response to public lamentation, reduced the pump price of petrol to N65/litre.
Yaradua’s tenure was short-lived, and his success, President Goodluck Jonathan, who was in office for about six years, tinkered with the pump price of petrol for three times.
Under Jonathan, Nigerians saw the pump price of petrol move to N141/litre in 2010, back to N97/litre the same year, and down to N87/litre in 2011.
The pump price of petrol had become a tool in the hands of politicians and those desperate to hang on to power had to pander to popular sentiments, hence, the Peoples Democratic Party (PDP) under President Jonathan’s leadership had to toy with the idea of reducing pump price of petrol.
Then came the All Progressives Congress (APC) with President Muhammadu Buhari in 2015.
The former military ruler was in power for eight years, taking his two four-year terms as President, within which period he tinkered with the pump price of petrol several times in a fluctuating manner that tended to reflect his government’s negotiating power with restive civil society groups.
In 2015, President Buhari increased the petrol to N141/litre and in 2016 to N165/litre, before pegging it at N180/litre in 2020, where it was until he left office in May 2023.
N180/litre was where the President Bola Ahmed Tinubu administration met it and on May 29, 2023, before the popular ‘subsidy is gone’ anchor mounted pressure on the prices and saw it hit the roof.
President Tinubu’s less than three-month tenure has seen pump price of petrol adjusted twice from N180 where he met it to N480/litre in June to N617/litre where it is hovering at the moment.
Sadly, it does appear that the current price per litre is a mere suggestion around which marketers could weave their profit, though some do so unscrupulously.
Recall that Commissioner for Special Duties, Enugu State, Emeka Ajogwu, on Friday, while on an unscheduled visit to some petrol stations in the Enugu metropolis to ascertain the alleged metre manipulation by filling station owners, cautioned them against ‘sharp practices’.
According to him, “Over 20 filing stations visited adjusted their metres and sold between N600- N620 per litre, respectively.
“It was confirmed that for every 20 litres of petrol bought, consumers were shortchanged to the tune of N768.60, N702, N682.00, N575.00, N441.60, N480.00, and N256.20 respectively.”
Sadly, this situation is replicated across Nigeria, and the pressure on the Foreign Exchange Market in addition to fluctuating global crude prices tend to guarantee that these incessant increment would continue in the domestic market.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that crude oil imports by domestic refineries rose by 151.5 percent to 5.13 million barrels in July 2026, from 2.04 million barrels in June.
In a related development, domestic crude supply to refineries fell sharply during the month.
According to the NMDPRA’s July 2026 Midstream and Downstream Statistics, local refineries received a total of 17.88 million barrels of crude in July, comprising 12.75 million barrels supplied domestically and 5.13 million barrels imported.
Imported crude therefore accounted for 28.7 percent of total crude receipts by domestic refineries in July, while domestic supplies contributed the remaining 71.3 percent.
The 5.13 million barrels imported in July represented a significant rebound from the 2.04 million barrels recorded in June. It was also higher than the 2.08 million barrels imported in May and 0.41 million barrels in April.
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However, July’s import volume remained below the 9.43 million barrels recorded in March, the highest monthly volume so far in 2026.
The data showed that crude imports stood at 0.71 million barrels in January before rising to 4.25 million barrels in February and peaking at 9.43 million barrels in March.
Imports subsequently plunged to 0.41 million barrels in April, before recovering to 2.08 million barrels in May, 2.04 million barrels in June and 5.13 million barrels in July.
The report also disclosed that domestic crude supply to refineries declined by 25.4 percent month-on-month, falling from 17.08 million barrels in June to 12.75 million barrels in July.
In January, domestic refineries received 8.83 million barrels of domestic crude and 0.71 million barrels of imported crude, bringing total receipts to 9.54 million barrels.
The figure rose to 13.13 million barrels in February, comprising 8.88 million barrels of domestic crude and 4.25 million barrels of imports.
March recorded the highest total crude receipts at 20.92 million barrels, with domestic supply contributing 11.49 million barrels and imports 9.43 million barrels.
Total receipts stood at 18.37 million barrels in April, made up of 17.96 million barrels of domestic crude and 0.41 million barrels of imports.
In May, refineries received 17.92 million barrels, comprising 15.84 million barrels of domestic crude and 2.08 million barrels of imports, while June recorded 19.12 million barrels, made up of 17.08 million barrels of domestic crude and 2.04 million barrels of imports.
Dangote Petroleum Refinery and Petrochemicals FZE has increased the gantry price of Premium Motor Spirit (petrol) from N1,185 to N1,200 per litre, effective August 26, 2026.
In an official communication to customers issued on Tuesday, the refinery’s Group Commercial Operations announced revised depot prices for gantry and coastal deliveries.
The email, titled ‘PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre)’, asked customers to take note of the revised DPRP PMS gantry and coastal price, which is effective 26th August 2026.
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According to the table contained in the notice, the coastal price rose from N1,562,265 per metric tonne to N1,582,380, while the gantry price increased from N1,185 to N1,200 per litre.
The refinery further directed customers to return all Authorisation to Collect documents for repricing, adding that a new volume contract would be issued for immediate loading resumption.
“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption. Should you require any further clarification, please do not hesitate to contact us,” the notice said.
The latest adjustment represents a N15 per litre increase in the gantry price and comes barely days after the refinery raised the price from N1,165 to N1,185 per litre. The previous increase took effect from midnight on August 21, 2026, according to industry trackers.
However, the latest hike comes against a backdrop of falling international crude oil prices. Data from oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, down $2.88 or 3.39 per cent, while Brent crude stood at $88.37 per barrel, declining by $3.80 or 4.12 per cent. Murban crude also fell to $92.71 per barrel, shedding $8.73 or 8.61 per cent.
Our correspondent gathered that marketers and depot operators who received the circular might have begun returning existing ATCs for repricing in line with the refinery’s directive.
The N15 increase could result in higher pump prices as oil marketers factor in transportation, landing and other downstream costs. Petrol is expected to return to an average of N1,250 per litre.
The Dangote Group has yet to respond to messages from our correspondent.
The price increase comes at a time of renewed volatility in the international oil market amid the ongoing US-Iran conflict. Reuters reported that oil prices fell as investors viewed the latest US sanctions against Iran as less threatening to global oil supplies than a military escalation. However, analysts warned that the decline could be an overreaction, noting that prices could rise sharply if Iran retaliates militarily.
Reuters also reported that supply disruption risks remained, with only two commodity vessels transiting the Strait of Hormuz on Monday, the lowest daily tally since early May. The waterway handled about one-fifth of global oil consumption before the conflict began, leaving the market vulnerable to further disruptions.
The 31 companies that emerged winners of 37 oil and gas blocks in the 2025 Licensing Round must pay their signature bonuses within the stipulated period or risk losing their provisional awards.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handed down the warning on Sunday, one month after it hosted the commercial bid conference in Abuja, where the successful companies emerged as winners of the available blocks.
The NUPRC said the process of compliance with the payment of signature bonuses had commenced following the issuance of provisional awards to the successful bidders.
“Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the NUPRC stated.
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The 37 blocks offered in the licensing round comprise Petroleum Prospecting Licences covering the Niger Delta onshore, shallow water and deep offshore areas, as well as frontier basins.
Among the blocks are PPL 2A29 to PPL 2A62 in the Niger Delta, PPL 2010 in the deep offshore, PPL 308 in the Benin Basin, PPL 900 to PPL 903 in the Anambra Basin, PPL 700 in the Chad Basin and PPL 800 and PPL 801 in the Benue Trough.
The commission also published the names of the 31 successful companies and the ranked reserve bidders for each of the 37 blocks.
A total of 143 companies participated in the licensing round, submitting about 200 bids for the 37 blocks. However, 13 of the 50 blocks initially put up for bidding attracted no bids.
Under the Petroleum Industry Act (PIA) and the applicable licensing guidelines, successful bidders are required to pay signature bonuses ranging from $3m to $7m per block.
They are also expected to provide the required guarantees, pay first-year rents and satisfy other post-award conditions within the prescribed period. Failure to meet the requirements will result in the automatic transfer of the affected award to the next-ranked reserve bidder, according to the NUPRC.
The commission’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, had earlier urged the successful bidders to make the required payments without delay and commence development of the awarded assets.
The NUPRC urged interested members of the public and stakeholders to visit the 2025 Licensing Round portal for further information on the awards and compliance requirements.
Under the PIA 2021 guidelines, winning bidders are required to pay their signature bonuses within a strict 90-day window. Since provisional award letters were issued immediately following the commercial bid conference on July 21, 2026, it means 30 days have already elapsed, and companies have 60 days left to remit the funds.
This shows that the regulator expects the signature bonuses to be paid on or before October 19, 2026.
If a winning company fails to complete the payment of its statutory signature bonus along with first-year rent within this 90-day window, the company automatically forfeits its bid guarantee. The provisional award will be revoked and immediately reassigned to the designated reserve bidder for the asset.
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