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Tag: Fuel

  • Fuel consumption in Nigeria drops by 16%

    Fuel consumption in Nigeria drops by 16%

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported a significant decline in fuel consumption for June 2025, with total fuel evacuation falling to 1.44 billion litres.

    The Director of Public Affairs, NMDPRA, George Ene-Ita confirmed in a report on Wednesday that daily fuel consumption had averaged 48 million litres, correcting earlier reports that suggested a lower figure of 38.94 million litres.

    Ene-Ita said that the total fuel evacuation for June was precisely 1,440,768,129 litres, representing a 16.42 per cent decrease, compared to May’s total supply of 1,768,812,804 litres, a drop of over 290 million litres.

    According to him, the figure represents a daily average evacuation of 48,025,604 litres, which is obtained by dividing the total monthly volume by the 30 days in the month under review.

    Breaking down the fuel supply figures, the NMDPRA reports stated that in June the Automobile Gas Oil (AGO) called diesel, saw a slight increase in diesel supply by 1.73 per cent, reaching 432.18 million litres compared to May’s 424.83 million litres.

    In spite of this, diesel distribution (truck-out) declined by 23.23 per cent falling from 552.35 million litres in May to 424.06 million litres in June.

    It further showed that the Household Kerosene (HHK) supply and distribution both recorded a 13 per cent decrease, with June figures at 7.79 million litres, down from nearly nine million litres in May.

    The sharpest decline was seen in automotive gasoline supply, which dropped by nearly 48 per cent from 72.36 million litres in May to 37.66 million litres in June.

    Distribution also fell by 16.54 per cent within the same period.

    The NMDPRA’s report also detailed fuel truck-out volumes to individual states, totalling the 1.44 billion litres evacuated in June.

    The report showed that Lagos received the highest volume at 205.66 million litres, followed by Ogun with 88.69 million litres, the Federal Capital Territory with 77.51 million litres, and Oyo with 72.81 million litres.

    The decline in overall supply and distribution suggests continued challenges in the petroleum midstream and downstream sectors, impacting national fuel consumption patterns in June.

    The NMDPRA, however, pledged to work closely with relevant stakeholders to strengthen distribution and guarantee uninterrupted supply of petroleum products across the country.

  • Just in: NNPC increases pump fuel price in less than one week

    Just in: NNPC increases pump fuel price in less than one week

    The Nigerian National Petroleum Company (NNPC) Limited has again jerked up the pump price of petrol, raising it to ₦925 per litre at its retail stations in Lagos.

    This marks the second hike in less than a week.

    Just two days ago, the national oil company increased the price to N₦915 per litre, sparking fresh concerns among consumers already grappling with the rising cost of living.

    At NNPC stations in Fin Niger, LASU-Iba, and Igando areas of Lagos, TheCable observed that the new pricing has already taken effect.

    The latest upward review is linked to continued instability in the global crude oil market, intensified by the ongoing conflict in the Middle East.

    Adding another layer to the evolving fuel pricing landscape is the Dangote Refinery’s recent adjustment of its ex-depot petrol price to ₦880 per litre on June 21.

    The refinery had earlier announced its intention to commence nationwide distribution of petroleum products, a move analysts believe could reshape the downstream sector.

    In preparation for this expansion, the refinery disclosed that it has acquired 4,000 new compressed natural gas (CNG)-powered tankers to bolster its logistics and distribution capacity across Nigeria.

    However, industry stakeholders have expressed mixed reactions.

    The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that Dangote’s aggressive forward integration strategy could lead to monopolistic dominance under the guise of market efficiency.

    The group also raised alarm about the potential for job losses within the downstream retail space, especially for independent marketers and smaller retail operators.

    Similarly, the Major Energies Marketers Association of Nigeria (MEMAN) has called on the federal government to clarify the extent of Dangote’s involvement in logistics and distribution, noting that such dominance could distort the competitive landscape.

  • IPMAN threatens to hike pump price of fuel

    IPMAN threatens to hike pump price of fuel

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to hike the price of petroleum at the pump.

    IPMAN made the threat while urging the Lagos State government to reduce the electronic call-up parking fee from N12,500 to N2,500.

    Mr Chinedu Ukadike, IPMAN’s National Publicity Secretary, in an interview with NAN on Tuesday in Lagos, made the appeal.

    Ukadike stated that the appeal is necessary to avert the potential rise in the price of petroleum at the pump.

    Recall that the Lagos government, via the Electronic Call-up Systems Company, recently raised the truck parking fee from N2,500 to N12,500.

    This decision triggered a protest on Monday, during which truck drivers suspended operations, affecting deliveries from Dangote Refinery and Lekki Deep Seaport.

    Ukadike said stakeholders at a recent meeting unanimously agreed the parking fee should return to N2,500, calling the current rate excessive.

    “The imposed amount is exorbitant and unbearable for marketers. It will inevitably lead to an increase in the pump price of petrol,” Ukadike said.

    He emphasised that the aim of their actions is to ensure stable energy supply and security nationwide.

    Meanwhile, truck operators under the Nigerian Association of Road Transport Owners (NARTO) and Petroleum Tanker Drivers (PTD) also protested along the Lekki-Epe corridor.

    Alh. Yusuf Othman, National President of NARTO, confirmed that loading activities have been temporarily halted in objection to the revised fee.

    “We’ve not declared a strike, only suspended loading at Lekki Port and Dangote Refinery because N12,500 per truck is too high,” he explained.

    Othman added that while they support the electronic call-up system, the associated cost must be fair and sustainable.

    He confirmed that discussions with Lagos State government officials are ongoing to find a reasonable solution.

  • Again, Dangote Refinery slashes fuel price by N15 now N875/litre

    Again, Dangote Refinery slashes fuel price by N15 now N875/litre

    Dangote Petroleum Refinery & Petrochemicals has announced another reduction of N15 in the price of its high-quality Premium Motor Spirit (PMS).

    As a result of this reduction, Nigerians will now purchase the product at the following prices: N875 per litre in Lagos; N885 per litre in the South West; N895 per litre in the North West and North Central, while it will be sold for N905 per litre in the South East, South South, and North East.

    These prices will apply through all its partners, including MRS, AP (Ardova), Heyden, Optima Energy, Techno Oil, and Hyde.

    The refinery called on other marketers to join its expanding network of partners, thereby demonstrating their support for President Bola Tinubu’s Nigeria First policy, which advocates for the prioritisation of locally-produced goods and services.

    Since the commencement of operations, Dangote Petroleum Refinery has consistently implemented cost-reduction strategies aimed at delivering tangible savings to Nigerians.

    In February 2025, the company carried out two price reductions on petrol, resulting in a total decrease of N125 per litre.

    This was followed by a further reduction of approximately N45 per litre in April.

    Additionally, the prices of other key products, such as diesel and Liquefied Petroleum Gas (LPG), have been significantly lowered, improving affordability across transportation, industrial, and domestic energy sectors.

    Dangote Petroleum Refinery recently reassured Nigerians of price stability despite fluctuations in global crude oil prices, reaffirming its commitment to supporting Nigeria’s economy.

    “By refining petroleum products domestically at the world’s largest single-train refinery, we are proud to make a substantial contribution to Nigeria’s energy security, foreign exchange savings, and overall economic resilience—aligning with President Bola Tinubu’s Renewed Hope Agenda, which focuses on addressing the nation’s economic challenges and improving the well-being of Nigerians. We are immensely grateful to His Excellency, President Bola Tinubu, for making this possible through the commendable Naira-for-Crude Initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” it stated.

    Dangote Petroleum Refinery further assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, as well as a surplus for export to enhance the country’s foreign exchange earnings.

    Recall that only last Tuesdsy, the founder of Dangote Refinery, Aliko Dangote, was named in the inaugural 2025 TIME100 Philanthropy list.

    The list recognises the 100 most influential leaders shaping the future of philanthropy worldwide.

    The list, published by TIME Magazine, includes Aliko Dangote, whose Foundation spends an average of $35 million annually on programmes across Africa, alongside other global figures in charitable work, such as Michael Bloomberg, Oprah Winfrey, Warren Buffett, and Melinda Gates, all of whom were recognised as Titans.

  • CNG in conflict: Alternative fuel Initiative struggles to deliver to Nigerians

    CNG in conflict: Alternative fuel Initiative struggles to deliver to Nigerians

    Nigerians using compressed natural gas (CNG) are facing long queues at filling stations, sparking concerns about the effectiveness of the Presidential Compressed Natural Gas Initiative.

    Truck owners are now spending days waiting in line to refill their cylinders at stations like the NIPCO CNG station in Ibafo.

    Former National Secretary of the Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, lamented the situation, saying, “Vehicles often spend hours—and trucks, days—at CNG filling stations due to inadequate service capacity.” He attributed the long wait times to the limited number of CNG stations, citing specific areas like Zuba-Kubwa Road, Abuja Airport Road, and the Ibadan Tollgate as examples.

    Osatuyi criticised the federal government’s implementation of the CNG initiative, stating that it has “turned it into a national embarrassment despite its noble intent.”

    He praised President Bola Tinubu’s initial enthusiasm for introducing CNG as an alternative fuel source but noted that inadequate infrastructure has hindered the initiative’s effectiveness.

    Highlighting the benefits of CNG, Osatuyi mentioned “economic viability, environmental sustainability, reduced air pollution, lower transportation costs, and improved safety.” However, he pointed out that the current infrastructure, including conversion centres and CNG refuelling stations, remains insufficient to support the transition to CNG.

    Osatuyi urged the government to study and replicate successful global models, saying, “The PCNGi committee should not assume a monopoly of knowledge.” He also called on President Tinubu to intervene directly, suggesting that existing filling stations be allowed to accommodate both CNG and traditional fuels.

    Meanwhile, the PCNGI Programme Coordinator, Mr. Michael Oluwagbemi, announced that 175 new CNG refilling stations will be ready in the next 12 to 18 months, which he believes will reduce the stress faced by Nigerians accessing CNG. Oluwagbemi expressed satisfaction with the progress made so far, noting that the number of functional CNG stations has increased from 11 to 65 in 2025.

    “We’ve used the better part of last year to kick off a very intense conversion program after an intense awareness campaign that took us across the country,” Oluwagbemi said, adding that the nation is now in a “much better place” than it was last year.

  • JUST IN: Dangote refinery suspends sale of fuel in Naira

    JUST IN: Dangote refinery suspends sale of fuel in Naira

    Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in Naira.

    In a statement issued on March 19, 2025, the refinery explained that its sales of petroleum products in Naira had exceeded the value of Naira-denominated crude received, necessitating an adjustment in sales currency.

    The company assured customers that once it receives an allocation of Naira-denominated crude cargoes from the Nigerian National Petroleum Company (NNPC) Ltd., it will promptly resume fuel sales in the local currency.

    Additionally, Dangote Refinery addressed rumors circulating online, refuting claims that it had halted loading due to an incident of ticketing fraud.

    The management described such reports as ‘malicious falsehood’ and reaffirmed the robustness of its operational systems, stating that no fraud-related issues had occurred.

    The statement reads: “Dear Valued Customers, We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira.

    “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars. To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.

    “Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is a malicious falsehood. Our systems are robust and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably.

    “As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira. We appreciate your understanding and cooperation during this period.”

  • Downstream price war: Govt fuel price drops to N774/litre

    Downstream price war: Govt fuel price drops to N774/litre

    The landing cost of premium motor spirit dropped to N774.82 per litre, cheaper than the ex-depot price of Dangote Refinery’s fuel, which stood at N825 per litre.

    This is coming as price war in the downstream oil sector intensified on Tuesday as major oil marketers moved to offer a lower price against the gantry loading cost of N825 per litre set by Dangote Petroleum Refinery.

    This development followed a revelation by marketers that the landing cost of Premium Motor Spirit (petrol) imported into Nigeria has dropped to N774.72 per litre.

    Marketers said the continued price plunge may lead to a reduction in the pump prices of PMS to about N800 per litre.

    Dealers said the N774.72 per litre landing cost, which factors in various expenses including shipping, import duties, and exchange rates, is a considerable reduction of N50.28 from the N825 per litre offered at the loading gantry of the Dangote Petroleum Refinery.

    The situation, according to industry stakeholders, has ignited a price war, with retail marketers now opting to dump the refinery products for imported products on the basis of lower pricing.

    Findings also revealed that this decrease in landing cost is expected to influence the price at which petrol is sold to consumers and could increase marketers’ interest in returning to petrol imports.

    “Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,” the National Publicity Secretary of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, stated.

    Recall that last Monday, NNPC dropped its retail petrol price to N860 and N880 per litre from N945 and N965 in Lagos and Abuja, respectively.

    NNPC’s petrol price drop followed Dangote refinery’s retail fuel price reduction to N860 and N880 per litre across its retail partners.

    The refinery, in its second price reduction in the new year and the third one in a space of two months, reduced its ex-depot petrol price from N890 to N825 per litre to the delight of Nigerians.

    However, the reduction by NNPC, the country’s largest fuel supplier, sparked a wave of competitive pricing among private marketers seeking to capture the market share in an environment where consumers are highly sensitive to price fluctuations.

    The pain of the price reduction was more significant for petrol importers as they lost an average of N2.5bn daily and N75bn monthly due to the PMS price reduction.

    But in a swift business survival strategy, these marketers have now secured fresh products at a cheaper cost that is now detrimental to the operations of the refinery.

    According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria and obtained by our correspondent on Tuesday, the on-spot estimated import parity into tanks has reduced to N774.82 per litre, a reduction of N152.56 or 16.5 per cent from the N927.48 per litre quoted on February 21, 2025 (the last energy data on petrol).

    The average cost for 30 days also dropped to N864.92 per litre, while on-the-spot sale at the NPSC terminal was N927.53.

    The document also noted that the price of Brent crude was benchmarked at $70.36 per barrel, down from $76.48 per barrel quoted on February 21, with an exchange rate of N1,517.24 per dollar. This price was calculated based on 38,000 metric tonnes by the marketers.

    This cost is viewed as an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products

    Further checks revealed that private depots have effected a price change lower than marketers off taking products from the refinery.

    An analysis showed that AA RANO depot has reduced its loading cost to N830 per litre, MENJ Depot now sells at N830, MRS TINCAN sold its products at N830, WOSBAB gave its customers a price estimate of N832, AITEO gave a price of N832 and RAINOIL depot sold its products at N831 per litre.

    While marketers that bought two million litres from the Dangote refinery at N825 are selling at N835 per litre, indicating an N1 profit and N4 less than the price offered by private depots.

    On Monday, oil marketers under the aegis of the Petroleum Products Retail Outlet Owners Association of Nigeria condemned the constant reduction of fuel prices, saying marketers are still counting losses.

    Despite deregulation, PETROAN said there is a need for a regulation that will make it mandatory that prices can only be changed after six months.

  • Petrol imports rose to 105% to ₦15.42trn In 2024 — NBS

    Petrol imports rose to 105% to ₦15.42trn In 2024 — NBS

    The latest data by the National Bureau of Statistics (NBS) on the foreign trade statistics, said the increase was from N7.51trn recorded in 2023.

    The development comes despite current increasing domestic refining capacity, especially at the 650,000 barrels-per-day Dangote Refinery and the ongoing rehabilitation of state-owned refineries.

    In December 2024, the Nigeria National Petroleum Company Limited (NNPCL) announced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Company (WRPC), which was approved for rehabilitation in 2021 for $897 million.

    The Port Harcourt Refining Company (PHRC), with a total installed capacity of 210,000bpd, recently restarted operations at its old plant, which currently produces 60,000bpd.

    Nigeria spent N2.01trn on fuel imports in 2020. By 2021, this figure more than doubled, rising by 126.9% to N4.56trn, indicating a sharp increase in import dependence and global price fluctuations. The upward trend continued in 2022, with import costs jumping by 69.1% to N7.71 trillion, driven by rising crude oil prices and Nigeria’s inability to refine a significant portion of its fuel needs locally. In 2023, petrol import expenditure recorded a marginal decline of 2.6% to N7.51 trillion, suggesting a temporary easing, possibly due to factors such as forex adjustments and lower global oil prices.

    However, riding on the back of a 40.9% depreciation of the naira, 2024 saw a 105.3% increase to N15.42 trillion, the highest on record.

    Despite the rise in local refining, production remains insufficient in meeting demands, necessitating continuous dependence on importation.

    Supply chain inefficiencies, and persistent demand-supply imbalances, Foreign exchange fluctuations, among other factors, have also militated against meeting local demands, as the rising cost of petrol imports continues to strain government finances and consumer purchasing power.

    Nigeria operates four national refineries: one in Kaduna, one in Warri, and two in Port Harcourt.

  • Petroleum prices will continue to slide downward -Rewane

    Petroleum prices will continue to slide downward -Rewane

    Seasoned economist and Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted that the cost of premium motor spirit also known as petrol will continue to slide downward until June 2025.

    Both Dangote Refinery and the Nigeria National Petroluem Company Limited (NNPCL) have crashed the cost of the essential commodity in recent weeks, easing the pressure on millions of Nigerians who depend on fuel for their energy needs.

    But Rewane says the recent reduction in the pump price of the product is expected to continue until mid-year.

    “So, generally between now and June, we will see prices begin to decline. But after June as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilisation,” Rewane said on Tuesday’s edition of Channels Television’s Business Morning show.

    According to him, the price war between Dangote Refinery and NNPCL will benefit the consumer more.

    “In a price war, nobody wins, the consumers win in the short run then eventually the market goes back to where it should be.

    But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane said.

    He attributed Dangote Refinery’s reduction in the pump price of petrol to production cost efficiency among other factors.

    The Dangote Refinery recently reduced its gantry price from ₦890 to ₦825 per litre. It also promised to refund customers who bought fuel at higher prices from its key partners.

    For MRS Holdings stations, it will sell for ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East respectively,” the management said of Dangote Refinery said.

    “The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: ₦865 per litre in Lagos, ₦875 per litre in the South-West, ₦885 per litre in the North, and ₦895 per litre in the South-South and South-East.”

  • Fuel scarcity loading as IPMAN threatens to embark on strike over unpaid claims

    Fuel scarcity loading as IPMAN threatens to embark on strike over unpaid claims

    The Independent Petroleum Marketers Association of Nigeria has issued a seven-day ultimatum to the Nigerian Midstream and Downstream Petroleum Regulatory Authority to fulfil the payment of bridging claims amounting to N100bn.

    The association threatened to withdraw services if the amount was not paid to them before the deadline.

    This move follows the NMDPRA’s failure to clear the debt, despite promises made 40 days ago in the presence of the National Security Adviser, Nuhu Ribadu. If unresolved, the situation could lead to a nationwide scarcity of Premium Motor Spirit nationwide.

    The Chairman of the IPMAN Depot Chairmen Forum, Yahaya Alhasan, disclosed this during a press conference in Abuja on Monday.

    Reading a communique, Alhasan expressed frustration over the NMDPRA’s failure to settle the bridging claims, despite repeated assurances.

    The claims, which date back to 2024, were deducted from marketers’ payments for products to settle bridging allowances.

    Alhasan said, “If NMDPRA doesn’t pay our money within seven days, we are going to withdraw our services across the nation.”