June 22, 2025
In response to rising global crude oil prices and escalating geopolitical tensions in the Middle East, MRS Oil Nigeria Plc, a major distributor of petroleum products refined by Dangote Refinery, has announced a significant increase in the pump price of Premium Motor Spirit (PMS), commonly referred to as petrol.
The price adjustment, which took effect on Saturday, June 21, 2025, has seen petrol prices in Lagos jump from N885 to N925 per litre.
Nationwide Pricing Adjustments
The latest pricing directive from MRS affects regions across Nigeria, with varied rates depending on location:
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Lagos: N925 per litre
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Southeast: N955 per litre
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Ogun, Oyo, Ondo, Osun, Ekiti: N935 per litre
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Northeast: N955 per litre
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Northwest and North Central: N945 per litre
The announcement was made via the company’s official X (formerly Twitter) handle, urging customers to “consult the updated pump prices across all MRS stations nationwide.” However, MRS did not provide a detailed explanation for the price surge, leaving many to speculate on the underlying factors.
Upstream Changes: Dangote’s Ex-Depot Price Raised
The price increase follows closely on the heels of a decision by Dangote Petroleum Refinery to revise its ex-depot price—the rate at which refined products are sold to marketers. On Friday, June 20, the ex-depot price rose from N825 to N880 per litre, triggering a ripple effect throughout the downstream supply chain.
Middle East Conflict Drives Oil Price Surge
Industry watchers have attributed the fuel price hike to growing instability in the Middle East, where tensions between Israel and Iran have escalated into open military confrontation. Since June 13, both nations have exchanged airstrikes, with fears mounting that the conflict could disrupt global oil flows.
In the past week alone:
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Global oil benchmarks like Brent Crude and West Texas Intermediate (WTI) surged by nearly 3%.
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Prices reached their highest levels since January 2025, adding pressure to energy markets worldwide.
The situation intensified dramatically on June 22, when U.S. President Donald Trump confirmed that American forces had launched targeted airstrikes on three major Iranian nuclear facilities — Fordow, Natanz, and Isfahan.
“Our objective was the destruction of Iran’s nuclear enrichment capacity,” Trump said in a televised address. He described the operation as a “spectacular military success”, executed after diplomatic channels with Tehran had collapsed.
Impact on Local Consumers and Markets
The rising pump price comes barely a month after MRS and other distributors slashed petrol prices across the country following Dangote Refinery’s initial pricing reduction to N875 in Lagos and N905 in other parts of Nigeria.
Before that rollback, petrol prices stood at N890 per litre in Lagos and N920 per litre in the North East and South-South regions.
MRS’s latest price hike is expected to further strain household budgets and transport costs, with ripple effects across goods and services.
The Role of the Dangote Refinery
The Dangote Petroleum Refinery, with a refining capacity of 650,000 barrels per day, is Africa’s largest refinery and a cornerstone in Nigeria’s energy strategy. It was designed to:
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Reduce Nigeria’s dependence on imported fuel
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Ease foreign exchange demand
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Stabilise domestic fuel supply
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Lower fuel prices in the long term
While the facility has already begun reshaping the fuel distribution landscape, current global market volatility highlights the limits of local capacity in insulating Nigeria from external economic shocks.
Looking Ahead: Will Prices Rise Again?
With no clear end in sight to the Israel–Iran conflict and broader regional uncertainty, analysts warn that petrol prices could rise even further in the coming weeks. Nigeria’s heavy reliance on global oil dynamics—despite local refining efforts—means that international crises will continue to influence pump prices at home.
In the meantime, motorists and businesses alike are bracing for higher fuel costs, as the ripple effects of geopolitical tension reach Nigerian roads, markets, and homes.
Stay tuned for updates as the situation evolves, and follow [Your Publication] for real-time analysis on fuel pricing, energy policy, and regional developments affecting Nigeria’s economy.
