The Nigerian National Petroleum Company Limited (NNPCL) recently made headlines with the appointment of Bayo Ojulari as the new Group Chief Executive Officer (GCEO). This announcement comes hand-in-hand with a significant increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. The new pump price is now pegged at ₦950 per litre in Abuja and ₦925 in Lagos, intensifying the ongoing national discourse about fuel price volatility in Nigeria.
The price adjustment, effective from April 2, 2025, is not an isolated incident. It follows a series of price changes influenced by various factors, including fluctuations in the global oil market, foreign exchange issues, and domestic supply bottlenecks. Just a month prior, in March 2025, prices had dipped to ₦860 per litre, offering a glimmer of hope for consumers. However, recent market dynamics have thwarted expectations for stable prices. Crude supply costs have risen, refinery pricing approaches have adjusted, and the Nigerian naira continues to weaken against foreign currencies, resulting in higher petrol prices.
In the lead-up to NNPCL’s pricing announcement, independent fuel marketers had already started increasing their rates. For instance, some petrol stations in Lagos were selling fuel for ₦930 per litre, while those in the northern regions witnessed prices surge to ₦960. Analysts have pointed out that Dangote Refinery’s recent shift from naira to dollar payments for crude oil has exerted additional pressure on foreign exchange rates. This decision has compounded the challenges facing the Nigerian fuel market, leading to inevitable increases in fuel costs.
Bayo Ojulari assumes leadership during a turbulent time, facing public outrage over rising petrol prices. The NNPCL has claimed that price adjustments reflect economic realities; however, for many Nigerians, the impact of these price hikes is severe. The success of Ojulari’s leadership will rely on effectively navigating the balance between the operational goals of NNPCL and the pressing needs of the Nigerian populace, particularly in ensuring energy security while fostering economic stability.
Looking ahead, Nigeria’s transition to a fully deregulated fuel market presents both challenges and opportunities. Issues such as sourcing crude oil, managing foreign exchange, and addressing distribution inefficiencies remain unresolved. Questions loom over whether Ojulari can implement a strategy that leads to stable fuel pricing or whether Nigerians must brace for further increases. As stakeholders call for measures such as enhanced refining capacity, reforms in forex policies, and infrastructure improvements, the upcoming months will be crucial in determining the direction of Nigeria’s fuel market under new leadership.
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