Obasanjo Challenges Tinubu: How Did Petrol Rise From ₦20 To Over ₦1,000

Former President Olusegun Obasanjo has questioned the dramatic increase in the price of petrol in Nigeria, highlighting how the cost of Premium Motor Spirit (PMS) has risen from about ₦20 per litre in 1999 to more than ₦1,000 in recent years.

According to Bush Radio Academy, petrol pricing has remained a major economic and political issue in Nigeria because of its impact on transportation, food prices, electricity generation, businesses and the overall cost of living.

At the beginning of Nigeria’s Fourth Republic in 1999, petrol was sold for approximately ₦20 per litre. More than two decades later, the price has climbed above ₦1,000, with the national average exceeding ₦1,500 per litre at some points in 2026 before subsequently declining.

The country has witnessed several adjustments in petrol prices under successive administrations, largely influenced by subsidy policies, global crude oil prices, foreign exchange conditions and supply challenges.

In 2000, the Olusegun Obasanjo administration increased the petrol price from ₦20 to ₦30 per litre before reducing it following widespread protests. The price eventually settled at about ₦22.

Further increases followed over the years, with petrol rising to ₦26 in 2002, about ₦40–₦42 in 2003 and eventually ₦65 in 2004.

In 2007, the price was increased to ₦75 shortly before Obasanjo left office, but the succeeding administration of Umaru Musa Yar’Adua reversed the increase and returned the price to ₦65.

Petrol remained around ₦65 for several years before the Goodluck Jonathan administration removed the subsidy in January 2012, causing the pump price to jump to about ₦141. Following nationwide protests, the government reduced it to ₦97.

The price was later reduced to ₦87 in January 2015 before the Muhammadu Buhari administration increased it to ₦145 in 2016.

By 2020, petrol prices had undergone several adjustments amid fluctuations in global crude oil prices and the economic impact of the COVID-19 pandemic. The price eventually settled around ₦160–₦165 per litre.

Although the official benchmark remained around ₦165 in 2022, consumers often paid considerably more due to fuel shortages and regional differences.

A major turning point came on May 29, 2023, when President Bola Tinubu announced the removal of petrol subsidy during his inauguration. The decision led to a sharp increase in pump prices, with NNPC stations moving from roughly ₦184–₦195 to more than ₦500 per litre within days.

Prices continued to rise as the country moved further towards a market-driven pricing system. By December 2024, the National Bureau of Statistics reported a national average petrol price of approximately ₦1,189.12 per litre.

The market subsequently witnessed both increases and reductions as domestic refining capacity expanded and competition among suppliers intensified. Some filling stations supplied with petrol from the Dangote Refinery sold the product at considerably lower prices towards the end of 2025.

However, prices surged again in the first half of 2026, with the national average reportedly reaching about ₦1,532.93 per litre in April and ₦1,596.25 in May.

Prices later began to ease as supply conditions improved and domestic refiners adjusted their prices. By the latter part of August 2026, petrol was selling at varying prices across different locations, with major outlets generally recording prices within the ₦1,200–₦1,300 range.

The significant rise in petrol prices over the years has continued to fuel public debate, with concerns about its impact on household expenses, transportation costs and economic activities across the country.