OGSPAN Urges Tinubu To Intervene As Petrol Gantry Price Rises To ₦1,350

By Suleiman Aremu | Solaremnews | Saturday, 12 September, 2026

The Oil and Gas Service Providers Association of Nigeria (OGSPAN) has called on President Bola Ahmed Tinubu to urgently intervene following the latest increase in the gantry price of Premium Motor Spirit (PMS), popularly known as petrol, by Dangote Petroleum Refinery.

The association, in a statement signed by its Vice President, Lawal Kamaldeen, said the latest adjustment, which raised the price from ₦1,265 to ₦1,350 per litre, represents an ₦85 or approximately 6.7 per cent increase.

According to OGSPAN, the latest adjustment brings the refinery’s cumulative increase in the PMS gantry price since August 21 to ₦185 per litre, representing about 15.9 per cent.

The association expressed concern that the increase was coming at a difficult time for Nigerian households and businesses already grappling with rising living costs and mounting economic pressures.

OGSPAN, however, acknowledged that Dangote Petroleum Refinery is operating in an increasingly challenging international oil market, with crude oil prices, product replacement costs and geopolitical disruptions contributing to higher production and operating costs.

The association specifically noted recent developments in the international oil market arising from the conflict involving Iran and the United States, saying such developments had created genuine cost pressures for refiners and petroleum marketers.

Despite recognising these pressures, OGSPAN said the likely impact of another increase in the cost of petrol on the domestic economy remained a major concern.

According to the association, petrol is a critical input into transportation, distribution, agriculture, small businesses and virtually every aspect of economic activity in Nigeria.

It warned that an increase in the wholesale price of petrol would inevitably put additional pressure on the downstream petroleum value chain, potentially triggering increases in transportation fares, logistics costs, food distribution expenses and the prices of essential goods and services.

OGSPAN also projected that small and medium-sized businesses could face higher operating costs, while school transportation and other household expenses could equally rise.

The association said the development could further intensify inflationary pressure at a time when families and businesses were already struggling with elevated costs.

It described the timing of the latest increase as particularly sensitive, given the resumption of schools across the country, which it said would place additional financial burdens on parents and school operators.

OGSPAN also noted that Nigeria was gradually approaching another politically sensitive period ahead of the next general election cycle, stressing the need for government policies that would minimise additional economic pressure on citizens and businesses.

The association said the current situation should not be reduced to a disagreement between government, refiners and petroleum marketers, arguing that the fundamental challenge was finding a balance between protecting consumers and ensuring that local refineries remained commercially viable.

To address the situation, OGSPAN appealed to President Tinubu to consider an urgent intervention aimed at cushioning the impact of international oil-market volatility on Nigerian consumers.

Rather than returning to the former system of broad, import-based fuel subsidy, the association recommended a targeted production-based support mechanism for locally refined petroleum products.

It proposed increased allocation of crude oil to qualified domestic refineries at competitive terms, particularly during periods of exceptional volatility in international oil prices.

OGSPAN also called for a review of applicable taxes, levies and other government charges on locally refined petroleum products where necessary, arguing that such measures could help moderate the impact on consumers without undermining the commercial viability of domestic refining.

The association further proposed the establishment of a transparent and time-bound domestic refining support framework directly linked to the actual production and supply of petroleum products into the Nigerian market.

It stressed that any government intervention must be transparent, independently monitored and tied to clear performance benchmarks to ensure that Nigerians derive tangible benefits from such support.

OGSPAN also called for strong independent oversight of any proposed production-support scheme, citing historical challenges associated with petroleum subsidy administration in Nigeria.

The association argued that the proposed mechanism should not be placed solely under the management of NNPC Limited.

Instead, it recommended a multi-agency monitoring framework involving the Office of the National Security Adviser, the Federal Ministry of Finance and other relevant regulatory and fiscal institutions.

It also called for appropriate auditing and public accountability mechanisms to ensure that government support translates into lower and more predictable petrol prices for Nigerians rather than creating another avenue for subsidy leakages.

OGSPAN said the objective of any intervention should be to protect consumers while strengthening the country’s domestic refining capacity and energy security.

The association said it recognised the importance of allowing market forces to operate and acknowledged the legitimate cost pressures currently facing domestic refiners.

However, it maintained that market liberalisation should be accompanied by policies capable of protecting consumers from excessive price shocks during extraordinary international circumstances.

According to OGSPAN, Nigeria’s strategic investment in domestic refining capacity provides an opportunity for the country to strengthen local refining, reduce its vulnerability to international supply disruptions and ensure that consumers benefit from increased domestic production.

The association therefore appealed to the Federal Government, domestic refiners, petroleum marketers and other stakeholders to urgently engage in discussions aimed at finding a sustainable solution to the current price pressures.

It said the ultimate objective should go beyond achieving cheaper petrol in the short term, stressing the need for a stable, competitive and sustainable domestic petroleum market capable of supporting economic growth, protecting consumers and strengthening Nigeria’s energy security.