Rising Petrol Prices Compound Economic Pressure On Nigerians
Petrol Rises to ₦1,400 Per Litre as Global Oil Rally Pushes Up Transport Costs
Fresh Fuel Price Hike Hits Consumers Nationwide
NIGERIANS are grappling with another round of fuel price increases as the pump price of Premium Motor Spirit (PMS), commonly known as petrol, has risen to as high as ₦1,400 per litre in parts of the country.
The latest increase has triggered higher transportation costs and renewed concerns over the rising cost of living, with commuters and businesses feeling the impact of the adjustment.
Industry stakeholders attribute the development largely to the sharp rise in global crude oil prices, with Brent crude climbing above $100 per barrel and the United States benchmark, West Texas Intermediate (WTI), trading at about $92.71 per barrel amid renewed geopolitical tensions in the Middle East.
Ex-Depot Prices Rise Across Major Supply Centres
Petroleum marketers have adjusted ex-depot prices in major distribution hubs, including Lagos, Warri and Calabar.
Loading data showed that A.A. Rano increased its ex-depot price in Lagos from ₦1,275 to ₦1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time also raised prices to ₦1,275 per litre.
EMADEB was the exception, slightly reducing its ex-depot price from ₦1,278 to ₦1,274 per litre.
Meanwhile, Dangote Refinery resumed gantry loading of petrol in naira after suspending operations for about a week and increased its ex-depot price from ₦1,075 to ₦1,215 per litre, representing a 13.02 per cent increase.
The refinery had earlier suspended gantry and coastal loading after introducing a dollar-based pricing structure, citing challenges associated with the Federal Government’s naira-for-crude supply arrangement.
Transport Operators Adjust Fares
The increase in fuel prices has pushed retail pump prices to between ₦1,260 and ₦1,400 per litre in many parts of Nigeria, forcing transport operators to adjust fares.
In the Federal Capital Territory, many commuters complained that transportation now consumes a larger portion of their monthly earnings, while commercial drivers maintained that rising fuel costs left them with little option but to increase fares.
Commercial transport operators in Lagos have also begun reviewing fares on selected routes, although competition among operators has prevented widespread increases.
In Maiduguri, the fare for the Maiduguri-Kano route reportedly rose from ₦20,000 to ₦25,000 following the latest fuel price adjustment.
Regional Price Variations Persist
Across the country, pump prices continue to vary.
In Ilorin, petrol now sells for between ₦1,255 and ₦1,305 per litre at major filling stations, while motorists pay about ₦1,350 in Kaduna.
In Adamawa State, prices range between ₦1,360 and ₦1,370 per litre, while independent marketers in Maiduguri sell petrol for between ₦1,370 and ₦1,390 per litre.
However, transport operators in Ibadan and Kano said fares have remained largely unchanged for now as they continue to assess market conditions.
Experts Link Increase to Deregulation
Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Borno State, Mohammed Kuluwu, said the persistent volatility in fuel prices has made many marketers hesitant to purchase new supplies.
Energy law expert, Prof. Dayo Ayoade of the University of Lagos, explained that the deregulation of Nigeria’s downstream petroleum sector means domestic fuel prices are now primarily determined by international crude oil prices and exchange rate movements.
According to him, the Petroleum Industry Act significantly limits direct government intervention in fuel pricing, while challenges surrounding the naira-for-crude initiative have constrained crude supply to domestic refineries.
Oil and gas analyst Abdullahi Shehu called on the Federal Government to supply crude oil to local refineries in naira at concessionary rates to reduce petrol prices.
Similarly, economist and energy expert Dr. Marcel Okeke warned that continued increases in fuel prices would further worsen inflationary pressures and deepen the economic hardship facing millions of Nigerians.
