Petrol Price Could Rise to N950 Per Litre in 2026 — CBN

By Admin

The Central Bank of Nigeria (CBN) has projected that the price of Premium Motor Spirit (PMS), commonly known as petrol, could increase to about N950 per litre in 2026.
Currently, the Dangote Petroleum Refinery sells petrol at a gantry price of N699 per litre, while the authorised retail price at MRS Oil outlets stands at N739 per litre.

In its 2026 Macroeconomic Outlook, the apex bank based its projections on an average crude oil price of $55 per barrel in 2026. The outlook also assumes an average exchange rate of N1,451.63 to the dollar in the fourth quarter of 2025, improving to N1,400/$ in 2026, driven by enhanced foreign exchange market efficiency, stronger capital inflows and a current account surplus.
The CBN further projected domestic crude oil production of about 1.5 million barrels per day throughout the forecast period.
Under these assumptions, the bank expects PMS prices to hover around N950 per litre in 2026. According to the CBN, increased private-sector investment—particularly in domestic refining—will support economic growth and help moderate energy costs. The bank added that higher crude oil output, improved security around oil assets and expanded refining capacity are expected to enhance supply conditions in 2026.
The apex bank also forecast that headline inflation will decline to 12.94 per cent in 2026, from an estimated 21.26 per cent in 2025. It attributed the anticipated slowdown to lower food prices and easing PMS costs, supported by increased competition in the midstream petroleum sector.
Prior to December, Petroleumprice.ng reported that petrol sold for around N900 per litre or more in many parts of the country. Prices fell after the Dangote Refinery reduced its ex-gantry price from N828 to N699 per litre. The refinery subsequently enforced a N739 per litre pump price through its partner, MRS Oil. When MRS outlets adopted the new rate in mid-December, competing filling stations lowered their prices to retain customers.
However, the Dangote Refinery has warned that petrol prices could rise as high as N1,400 per litre if Nigeria returns to heavy dependence on imported fuel. In a statement, the refinery noted that large-scale local production has helped stabilise the downstream market and reduced price volatility.
(Source: Saturday Vanguard; headline adapted)