In the wake of widespread public concern and industry backlash, leading petroleum marketing firm, SGR, has justified its decision to peg the pump price of Premium Motor Spirit (PMS) at N899 per litre. The company insists the price hike reflects prevailing market conditions following the full deregulation of Nigeria’s downstream oil sector.
SGR’s defense comes after the Independent Petroleum Marketers Association of Nigeria (IPMAN) condemned the move, warning it could trigger further disruptions and price instability within the sector. However, the company, in a statement released on Monday by its Corporate Communications Team, dismissed suggestions that the N899 per litre pricing model was arbitrary or exploitative.
“Pricing in a deregulated downstream sector is shaped by multiple market forces,” SGR said. “Our pricing model is competitively aligned with these realities and is not intended to destabilise the market or place pressure on fellow marketers.”
SGR highlighted that key cost drivers such as volatile foreign exchange rates, high global crude oil prices, and increasing importation expenses continue to influence the retail cost of petrol. With Nigeria no longer subsidizing fuel and relying heavily on private sector imports, companies like SGR say they are bearing the brunt of financial burdens passed on from international suppliers.
“The sourcing of fuel through international channels comes with dynamic pricing variables, especially with the naira trading above N1,400 to the dollar in recent weeks. We’re not immune to these market pressures,” the company added.
Beyond procurement, SGR also pointed to the high cost of distribution and operational inefficiencies across the fuel supply chain. From the cost of transporting petroleum products across poorly maintained road networks to terminal charges at depots and tank farms, the marketer said the cumulative expenses justify the current price point.
“As a responsible business, we are committed to maintaining the integrity of our distribution network and delivering service excellence. That comes at a cost, especially in today’s challenging economic environment,” the statement added.
Despite facing criticism from IPMAN and a wary public, SGR said it remains open to “constructive dialogue” with stakeholders to help establish a sustainable and transparent pricing system. The company expressed willingness to work with regulators, marketers, and consumer advocacy groups to build trust and promote efficiency in the sector.
“We believe collaboration is the only way to ensure fuel availability, affordability, and long-term stability. This is not a time for blame; it’s a time for strategic cooperation,” the company said.
Industry analysts have warned that pump prices may climb even higher if inflation, foreign exchange scarcity, and import bottlenecks are not urgently addressed. With Dangote Refinery yet to begin large-scale domestic supply of PMS, Nigeria remains heavily reliant on fuel imports, leaving pricing vulnerable to global market fluctuations.
Reacting to the development, energy economist Dr. Chinedu Eze said, “This is a clear result of full deregulation without local refining capacity. Until we begin refining petrol locally at scale, prices will continue to reflect global trends and forex instability.”
For many Nigerians, however, the latest increase comes as yet another blow in an already difficult economy marked by rising inflation, food insecurity, and stagnant wages. Transport operators, small businesses, and households say the cost of petrol at N899 per litre is unsustainable and could deepen poverty.
“It’s getting too hard to survive,” lamented Lagos-based driver, Adewale Johnson. “Each time fuel goes up, everything else follows—transport, food, rent. Government needs to intervene.”
As the nation grapples with the realities of deregulation, the debate over pricing fairness versus market sustainability is expected to intensify in the coming months.