Fuel Prices Crash by ₦35 as Naira Strength Sparks More Relief

By Sharon Zachariah

Editor

Sharon Zachariah

Posted: June 8, 2025 at 10:49 am, Updated: June 8, 2025 at 10:49 am

Fuel Prices Crash by ₦35 as Naira Strength Sparks More Relief

Fuel is getting cheaper across Nigeria, bringing rare relief to drivers and families already burdened by high living costs.

At several filling stations in Lagos, Abuja, and other major cities, the price of Premium Motor Spirit (PMS), commonly called petrol, has started falling. This drop is thanks to a stronger naira and stiffer competition among fuel marketers. Nigerians are now paying less at the pump, and experts say the trend could continue in the coming weeks.

Bismarck Rewane, a well-known economist and Managing Director of Financial Derivatives Company, has predicted that petrol prices may drop even further in June and July. According to him, if the naira keeps gaining strength and fuel companies stay competitive, Nigerians might see petrol sell for as low as ₦845 per litre. Diesel may also reduce to around ₦950 per litre.

For many commuters and transporters, this new shift is a welcome change.

“We’ve suffered enough with these high costs. If it drops again, I can finally breathe,” said Adebayo, a taxi driver in Lagos who spends over ₦20,000 daily on fuel.

As of early June, filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) and other key players have adjusted prices. In Abuja, for instance, prices dropped by at least ₦10 per litre in many outlets. Some stations, like Ranoil, Shafa, and AA Rano, now sell petrol at ₦900 per litre, down from ₦910.

Outlets operated by Dangote Refinery partners—including MRS, AP Ardova, Optima, and Bovas—dispense fuel at around ₦895 per litre. In Lagos, fuel stations owned by NNPC have dropped their price to ₦870 per litre. That same rate is also seen at other major outlets linked to Dangote.

Meanwhile, Mobil, Matrix, Petrocam, and similar stations now sell fuel for ₦875. At Total Energies stations, the price stands at ₦873.

Though these reductions may seem small, they mean a lot to everyday Nigerians.

“When prices rise, everything else goes up—transport, food, even school fees. But when fuel drops, I feel hope,” said Folake, a mother of four from Gwagwalada.

The push behind this new price movement is not just market luck. Experts say a few key things are working in Nigeria’s favor.

First, the naira has shown signs of steady recovery against the dollar. As the local currency strengthens, fuel importers spend less on foreign exchange. That savings trickles down to the final pump price.

Second, competition in the fuel market is becoming sharper. Dangote Refinery, which has become more active in local supply, now sells at competitive depot rates. With Dangote’s gantry price hovering around ₦825 per litre, other players have little choice but to respond.

“Depot prices are closely aligned with Dangote’s,” Rewane explained. “That’s why many stations are adjusting quickly. No one wants to lose customers.”

Energy analyst Billy Gillis-Harry, who serves as the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), agrees with this view. He believes competition is now reshaping the market in a healthy way.

“Importing fuel at competitive global prices makes this possible,” he said. “Adjustments are not only needed—they are necessary. They help us stay afloat and help the consumer, too.”

Another major factor is the volume of crude oil available for refining. Dangote Refinery, which is seen as a game changer for Nigeria’s energy future, has been processing more crude in recent months. But much of this crude is coming from the United States—not Nigeria.

Recent data shows that in 2025 alone, about one-third of the crude processed by Dangote came from the U.S. This development happened because sourcing oil locally has become difficult. Dangote had to increase U.S. imports to keep its machines running.

Still, industry insiders believe that as domestic supply chains improve, costs will drop even more.

The refinery’s ramped-up production is now creating a ripple effect in the local market. With more fuel in circulation and more companies trying to undercut each other, the pressure is mounting for even lower prices.

Some experts think another round of reductions could come after the Eid al-Adha holiday. They say major marketers may use the festive period to make bold pricing decisions that win back consumers.

“The holiday is a key moment for sales,” noted Yusuf Danladi, an independent energy trader. “If anyone wants to boost volume, they’ll drop their price now.”

For drivers like Kehinde, a commercial bus operator in Abuja, even a ₦10 or ₦15 reduction makes a huge difference.

“My daily profit was always squeezed because of fuel,” he said. “But now I have room to save.”

Though the country still faces economic challenges, this petrol price adjustment offers a rare silver lining. Many are hoping the naira continues to recover so the pressure at the pump eases even more.

“If the government helps stabilize the exchange rate, we will all feel the impact in our wallets,” said Gillis-Harry.