Petrol Price Hike Sparks Fresh Concerns As Pump Prices Climb Nationwide

Transport fares have begun rising across parts of Nigeria following another increase in the price of Premium Motor Spirit (PMS), with petrol now selling for as much as ₦1,400 per litre in some locations after global crude oil prices surged.....KINDLY READ THE FULL STORY HERE▶

The latest hike has heightened concerns among commuters, commercial transport operators and small business owners, who fear it will further deepen the country’s cost-of-living crisis.

The increase comes amid renewed tensions in the Middle East, which pushed Brent crude above $100 per barrel and raised fears of disruptions to global oil supply.

Latest loading data from petroleum marketers showed fresh increases in ex-depot petrol prices in Lagos, Warri and Calabar.

In Lagos, A.A. Rano raised its ex-depot price from ₦1,275 to ₦1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time adjusted their prices to ₦1,275 per litre. Aiteo, Heyden and Nipco retained their previous price of ₦1,275 per litre, while Emadeb slightly reduced its price from ₦1,278 to ₦1,274.

Dangote Petroleum Refinery also resumed gantry loading of petrol in naira on Thursday after suspending the service for one week. However, it increased its ex-depot price to ₦1,215 per litre, representing a ₦140 or 13.02 per cent increase from the previous ₦1,075.

The refinery had temporarily switched to dollar-denominated pricing after citing challenges in sourcing sufficient crude oil under the Federal Government’s naira-for-crude arrangement. During that period, petrol sold for $0.779 per litre, diesel for $1.087 and Jet A1 aviation fuel for $0.942 per litre.

Nigerians lament fresh transport costs

The latest fuel price adjustment has triggered widespread frustration, with many Nigerians complaining that transport fares rise immediately whenever petrol becomes more expensive but rarely decline when international crude prices fall.

Residents noted that although Brent crude previously dropped to around $70 per barrel, petrol prices in Nigeria remained above ₦1,000 per litre despite calls by the Federal Government for marketers to reflect lower global prices.

In Abuja, commuters said transportation now consumes a significant portion of their monthly income.

A civil servant, Grace Okeke, said every fuel price increase immediately affects her daily expenses.

“My salary has not changed, but I now spend much more just getting to work and back. It is becoming impossible to survive in Abuja,” she said.

Another resident, Musa Ibrahim, warned that the increase would inevitably push up food prices and the cost of other essential goods.

Commercial drivers under pressure

Commercial transport operators said the frequent fluctuations in petrol prices have made it increasingly difficult to run their businesses.

Taxi driver Emmanuel Ujah said the uncertainty surrounding fuel prices makes planning almost impossible, while another driver, Ganiyu Jide, noted that petrol now accounts for the largest share of his daily operating costs.

“If we don’t increase transport fares, we cannot maintain our vehicles or even feed our families,” he said.

Although fare increases have not been uniform across Abuja, commuters reported paying between 20 and 40 per cent more on several routes than they did only weeks ago.

In Lagos, some operators have begun reviewing fares on major routes, although competition has prevented a widespread increase. The varying pump prices charged by different marketers have also created uncertainty for drivers who purchase fuel multiple times daily.

Mixed situation across states

Transport fares have remained relatively stable in Ibadan despite petrol selling between ₦1,260 and ₦1,300 per litre. Commercial drivers said passengers were already under severe financial pressure, making frequent fare increases difficult.

In Ilorin, however, several filling stations raised pump prices by between ₦35 and ₦85 per litre. Residents warned that the increases would soon affect transportation and commodity prices, urging the government to take urgent measures to stabilise the market.

Kaduna residents are also grappling with higher fuel prices, with petrol now selling for about ₦1,350 per litre after falling below ₦1,200 only weeks earlier. Drivers described the rapid changes as unsustainable.

In Adamawa State, NNPCL stations sold petrol at ₦1,310 per litre, while independent marketers charged between ₦1,360 and ₦1,370. Operators said they were monitoring the situation before deciding whether to review transport fares.

Transport fares in Kano have largely remained unchanged, as commercial tricycle operators opted to wait for greater price stability before increasing charges.

In Maiduguri, petrol sold for between ₦1,370 and ₦1,390 per litre, while the fare for the Maiduguri-Kano route rose from ₦20,000 to ₦25,000. Independent marketers said volatile prices had discouraged some dealers from buying new supplies, fearing losses before products reached the state.

Small business owners who depend on petrol-powered generators also expressed concern over rising operating costs, warning that they may be forced to increase the prices of their goods and services.

Experts blame market forces

Energy law expert and University of Lagos professor, Dayo Ayoade, attributed the rising petrol prices to Nigeria’s deregulated downstream sector, explaining that domestic fuel prices now move in line with international crude oil prices and exchange rate fluctuations.

He said the Petroleum Industry Act limits the Federal Government’s ability to intervene in pricing and noted that Nigeria’s existing crude-backed financing arrangements have reduced the volume of crude available for domestic refining.

According to him, continued geopolitical tensions and higher crude prices will keep exerting upward pressure on petrol prices for as long as the conflict persists.

Industry analyst Abdullahi Shehu urged the Federal Government to subsidise crude oil supplied to local refineries, arguing that doing so could significantly lower pump prices for consumers.

Economist and oil and gas expert Dr. Marcel Okeke also criticised the government’s economic reforms, saying they had failed to improve citizens’ welfare.

He argued that the continued rise in petrol prices, coupled with the country’s reliance on imported petroleum products, had worsened the economic burden on Nigerians and alleged that vested interests benefiting from fuel importation were frustrating efforts to achieve lasting reforms.