Transport fares have risen in several Nigerian cities after petrol prices climbed to as high as ₦1,400 per litre, according to Daily Trust.
The increase followed a jump in global crude oil prices, with Brent crude rising above $100 per barrel amid renewed tension in the Middle East.
Fresh loading data from marketers showed ex-depot prices rising across Lagos, Warri and Calabar this week.
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 moved to ₦1,275.
Meanwhile, Dangote Refinery, the country’s dominant fuel supplier, resumed gantry loading of Premium Motor Spirit in naira on Thursday after a week-long suspension.
The refinery raised its ex-depot petrol price to ₦1,215 per litre, a 13.02% jump from ₦1,075.
It had suspended loading on July 15 after introducing a temporary dollar-denominated pricing template, citing difficulty accessing enough crude under the federal government’s naira-for-crude arrangement.
Fuel Costs Squeeze Households Across the Country
In Abuja, civil servant Grace Okeke said the fare hikes are eating into her income.
“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.
Fares vary widely by city. Kaduna has seen petrol jump from below ₦1,200 to around ₦1,350 within weeks, while Kano’s fares have stayed largely unchanged as operators wait to see if prices stabilise.
In Ilorin, several marketers raised prices between ₦35 and ₦85 per litre, with NNPCL stations reaching ₦1,305.
Commercial drivers say the swings make it hard to plan. Taxi operator Emmanuel Ujah said, “You don’t know what petrol will cost tomorrow. That uncertainty affects our business and our families.”
Experts Point to Market Forces and Stalled Reforms
Professor Dayo Ayoade, an energy law expert at the University of Lagos, said the situation reflects Nigeria’s deregulated petroleum market, where local prices now track international crude costs and the exchange rate directly.
He explained that the Petroleum Industry Act limits government intervention in pricing except where market anomalies occur, and that Nigeria’s crude commitments under existing financing deals have shrunk the volumes available for domestic refining.
However, economist and oil industry expert Dr Marcel Okeke argued that the government’s reforms have failed to improve ordinary living standards.
“Many Nigerians have been made worse off by the reforms,” he said, pointing out that petrol sold for under ₦200 per litre in May 2023.
He alleged that vested interests benefiting from fuel importation have discouraged investment in fixing local refineries.
The renewed price pressure follows attacks on Saudi oil tankers in the Red Sea and disruptions at Kazakhstan’s Caspian Pipeline Consortium terminal, both of which have tightened global supply expectations.
Brent crude had gained 7.43% to $101.10 per barrel by Thursday afternoon, with WTI up 6.77% to $92.71, extending a roughly 20% rally over two weeks.
Can we all agree that there has not been much gain from oil to the citizens of Nigeria? We had oil subsidy to hang on, yet you took it, nothing cushions the effects, yet you give us statistical improvements, hmm, I guess after all it is statistics we will chop Mr President.
The government points to improved infrastructure such as the Lagos-Calabar coastal highway, refurbished Third Mainland bridge Lagos, the reconstruction of the Murtala Mohammed International airport, and increased revenue to the states, as benefits of the subsidy removal. I don’t think that the savings was intended to be “chop” by the people directly. The masses may have had the wrong expectations from the policy.