Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Millions of Nigerians are facing renewed economic hardship as the petrol price has risen to as high as N1,400 per litre in several parts of the country, forcing transport operators to increase fares and adding further pressure to the rising cost of living.

The latest increase follows a sharp rise in global crude oil prices, which has driven up the cost of refined petroleum products and triggered fresh adjustments in ex-depot and retail pump prices across Nigeria’s downstream petroleum market.

Industry data obtained from petroleum marketers showed that several depots in Lagos, Warri and Calabar reviewed their ex-depot prices upward after international oil prices surged.

In Lagos, A.A. Rano increased its ex-depot price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time adjusted theirs to about N1,275 per litre. However, EMADEB marginally reduced its price from N1,278 to N1,274 per litre.

The development coincided with the resumption of Premium Motor Spirit (PMS) loading by the Dangote Petroleum Refinery, which returned to naira transactions after temporarily suspending gantry loading. At the same time, the refinery increased its ex-depot price from N1,075 to N1,215 per litre, representing a 13.02 per cent increase.

The refinery had suspended truck and coastal loading after introducing a dollar-denominated pricing structure, citing challenges in sourcing sufficient crude oil under the Federal Government’s naira-for-crude initiative. Although naira sales have resumed, the higher ex-depot price has pushed retail prices upward across the country.

Consequently, motorists are now buying petrol at between N1,260 and N1,400 per litre, depending on location and marketer, with independent filling stations recording some of the highest pump prices.

The increase has had an immediate impact on transportation costs.

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In the Federal Capital Territory (FCT), commuters said they now spend significantly more on daily transportation, while commercial drivers explained that rising fuel costs have made fare adjustments unavoidable to remain in business.

Some commercial transport operators in Lagos have also raised fares on major routes, although competition among bus operators has limited uniform increases across the city.

In Kwara State, major marketers now sell petrol for between N1,255 and N1,305 per litre, while pump prices have climbed to around N1,350 per litre in Kaduna.

Motorists in Adamawa State are paying between N1,360 and N1,370 per litre, while independent filling stations in Maiduguri now dispense petrol for between N1,370 and N1,390 per litre.

The rising cost of fuel has also affected interstate travel. Operators on the Maiduguri–Kano route have increased transport fares from N20,000 to N25,000, citing higher fuel costs and increased vehicle operating expenses.

However, transport fares have remained relatively stable in parts of Ibadan and Kano, where operators say they are closely monitoring market developments before making further adjustments.

The Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Borno State, Mohammed Kuluwu, said frequent fluctuations in petrol prices have created uncertainty in the downstream sector, making many marketers reluctant to load products because of fears of sudden price changes.

Energy law expert Prof. Dayo Ayoade of the University of Lagos attributed the latest increase to the realities of Nigeria’s deregulated petroleum market.

According to him, domestic fuel prices are now largely determined by international crude oil prices, foreign exchange movements and market forces, while the Petroleum Industry Act (PIA) significantly limits direct government intervention in pricing.

He added that challenges affecting the implementation of the Federal Government’s naira-for-crude policy have reduced the volume of crude supplied to local refineries, contributing to higher refining and distribution costs.

Oil and gas analyst Abdullahi Shehu called on the Federal Government to expand crude oil supply to domestic refineries under favourable terms, arguing that stronger local refining capacity could help moderate petrol prices and reduce dependence on imported refined products.

Similarly, economist and energy expert Dr. Marcel Okeke warned that sustained increases in fuel prices could further accelerate inflation, raise production and logistics costs for businesses and worsen the financial burden on households already struggling with rising food prices and other essential expenses.

Economic analysts note that because petrol remains the primary fuel powering transportation, logistics and many small businesses, continued increases in pump prices are likely to translate into higher prices for goods and services nationwide, thereby deepening inflationary pressures.

The latest fuel price adjustment comes at a time when many Nigerians are already contending with high inflation, rising electricity costs and increased household expenses, raising concerns that further increases in transportation costs could negatively affect businesses, workers and consumers if global oil prices remain elevated.

Petrol price hits N1,400 per litre as transport fares rise across Nigeria

Nigerians May Pay More for Fuel as Global Oil Prices Surge Above $100 Per Barrel

Nigerians face the prospect of higher petrol prices, increased transport fares, and renewed inflationary pressure as global crude oil prices have surged above $100 per barrel for the first time since May amid escalating conflict in the Middle East.

The surge represents about a 6.77 per cent increase on Thursday following several days of gains as the United States stepped up military strikes against Iran. Brent crude, the international benchmark against which Nigeria’s oil is priced, climbed above $100 per barrel on Thursday, July 23, 2026, reaching $100.69 after surging more than seven per cent in a single day. By 4:40 p.m. WAT, Brent crude had risen 7.43 per cent to $101.10 per barrel, while U.S. benchmark West Texas Intermediate (WTI) gained 6.77 per cent to trade at $92.71 per barrel.

The latest price rally has been driven by threats to two of the world’s most strategic shipping routes: the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes, and the Bab el-Mandeb Strait in the Red Sea. The Iran-aligned Houthi militia in Yemen has opened a new front by targeting vessels carrying Saudi oil in the Bab el-Mandeb Strait after declaring a naval blockade on shipments from Saudi Arabia. The Houthi group claimed to have attacked two Saudi oil tankers, identified as ENCELIA and LAYLA, using ballistic and cruise missiles as well as drones. The attacks have lifted global benchmark prices by about 20 per cent over the past two weeks. Several oil tankers have altered their routes, with at least five changing course in the Red Sea. The disruption has been compounded by other supply constraints. Kazakhstan has reportedly begun cutting oil production after drone attacks disrupted tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea. Indian state refiners have suspended Iraqi crude loadings because of shipping risks around Hormuz, while Russian fuel exports remain constrained following months of attacks on refinery infrastructure. Strategic petroleum reserves released by several governments since the conflict escalated have reduced emergency stockpiles, commercial inventories have continued to decline, and China has increasingly relied on previously accumulated reserves rather than fresh imports. Goldman Sachs has warned that Brent crude could climb to as high as $120 a barrel by the end of the year if exports through the strategic waterway remain disrupted.

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The surge in crude oil prices has already translated into higher costs at Nigerian pumps. The impact is already beginning to reflect in Nigeria’s downstream market, with prices at filling stations in Lagos and its environs currently ranging between N1,300 and N1,400 per litre, depending on location. In Abuja, pump prices have increased from about N1,155 per litre to approximately N1,350 per litre, adding further pressure on households and businesses already grappling with elevated living costs. Dangote Petroleum Refinery resumed gantry loading of Premium Motor Spirit (PMS) in naira on Thursday after a week-long suspension, while raising its ex-depot petrol price to N1,215 per litre, up from the previous N1,075 per litre, representing a 13.02 per cent increase. The refinery had suspended gantry and coastal loading on July 15 after introducing a dollar-denominated pricing template for refined petroleum products, a move that disrupted fuel supply and forced marketers to source products from private depots. Fresh loading data obtained from petroleum marketers showed an upward movement in ex-depot prices across Lagos, Warri and Calabar. In Lagos, A.A. Rano increased its ex-depot price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time hiked their rates to N1,275. The spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that loading had resumed across depots, although it remains unclear whether purchases directly from the Dangote Refinery are now being settled in dollars.

The rise in crude oil prices presents a mixed picture for Nigeria. The 2026 Federal Government budget was benchmarked at a crude oil price of $64.85 per barrel**, daily production of 1.84 million barrels, and an exchange rate of N1,400 to the US dollar. At current prices, Nigeria is earning about **$35 more per barrel than projected, potentially generating billions of naira in additional revenue if production and exports remain stable. However, revenue gains may be moderated by lower-than-budgeted output. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), current oil production stands at about 1.7 million barrels per day, including condensate. More importantly, economists caution that the fiscal windfall may be outweighed by the rising cost of living, as Nigerians bear the burden of higher fuel prices under the deregulated downstream petroleum market. The Centre for the Promotion of Private Enterprise (CPPE) has warned that domestic refining alone may not significantly reduce petrol prices, as crude oil feedstock is priced using international benchmarks and denominated in US dollars.

Transport fares have already begun to rise across the country as a result of the fuel price increases. In Abuja, residents have expressed frustration over the latest increase, saying transportation costs now consume a significant portion of their earnings. A civil servant told Daily Trust: “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.” Any increase in petrol prices is expected to trigger fresh hikes in transport fares, with knock-on effects on the prices of food, manufactured goods, and other essential commodities across the country. The International Energy Agency (IEA) has warned that refined fuel markets remain tighter than crude supplies, meaning that markets for refined oil products, including diesel and gasoline, are considerably tighter than those for crude. IEA Executive Director Fatih Birol warned that a “full and unconditional reopening of the Strait of Hormuz” would be essential to prevent a further deterioration in global energy security.

Commenting on the development, Managing Director of Petroleumprice.ng, Jeremiah Olatide, said the downstream sector has become increasingly volatile. “With the resumption of loading by Dangote Petroleum Refinery in naira at N1,215 per litre on Wednesday, we expected fuel importers to reduce prices, and some actually did. However, the sudden spike in crude oil prices due to the Middle East crisis has disrupted that trend. We should expect more price instability in the coming weeks,” he told Vanguard. National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, noted that while depots and filling stations had yet to implement widespread price increases, the impact could soon be felt across the economy. “The implications will be far-reaching for households, businesses and the wider economy once operators across the value chain adjust their prices,” he warned. Energy experts say the current situation reflects the realities of Nigeria’s deregulated petroleum market under the Petroleum Industry Act (PIA). Professor Dayo Ayoade, an energy law expert at the University of Lagos, explained that local petrol prices are now tied directly to international crude oil prices and exchange rate movements. The exposure of Nigeria’s local PMS markets to the vulnerabilities of an oil shock and increasing prices due to the US-Iran war will be ongoing. So long as the conflict continues, the price will go up, and Nigeria will be unable to protect itself against that higher cost.

Nigerians May Pay More for Fuel as Global Oil Prices Surge Above $100 Per Barrel

Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts

The Nigerian naira traded within a relatively stable range against the United States dollar on Friday, July 24, 2026, at both the official Nigerian Foreign Exchange Market and the parallel market, though analysts warn that increased dollar purchases by fuel importers could trigger further depreciation in the coming days.

Data from the official market showed the naira exchanging at approximately ₦1,369.92 to the US dollar at the Nigerian Foreign Exchange Market (NFEM), which serves as Nigeria’s official exchange rate benchmark. According to Central Bank of Nigeria data, the highest rate offered during trading was ₦1,370 per dollar, while the lowest rate stood at ₦1,365 per dollar. In the parallel market, commonly referred to as the black market, the dollar traded at around ₦1,420 per dollar, according to market trackers, with Bureau de Change operators buying at approximately ₦1,410 and selling at ₦1,420. Rates may differ slightly depending on location, dealer margins, and transaction volumes. Based on the prevailing official rate, $100 would exchange for about ₦136,992**, while **$1,000 would be worth roughly ₦1.37 million at the NFEM.

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The naira is coming under renewed pressure as fuel importers increase foreign exchange purchases to build inventories, according to a Reuters report cited by The Punch. The Nigerian currency, alongside those of Ghana and Uganda, is projected to weaken against the dollar over the next week, while Kenya’s shilling and Zambia’s kwacha are expected to remain broadly stable. The anticipated depreciation is attributed to increased demand for foreign exchange by fuel importers who have been granted licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import refined petroleum products for the July–September period. Importers including AA Rano, AYM Shafa, Bono, NIPCO, and Pinnacle are building inventory for the quarter, requiring significant foreign currency purchases that are outpacing supply and creating downward pressure on the naira. A trader told Reuters that the local currency was likely to face downside risks as importers sought more dollars to finance fuel purchases. “We expect the naira to come under pressure, with downside risks skewed toward a depreciation as fuel importers front-load dollar purchases to build inventories,” the trader said.

The naira showed some strength earlier in the week as foreign exchange market activity surged dramatically. On Tuesday, July 21, **total turnover at the NFEM climbed to $1.5 billion**, up 87.63 per cent from $816.79 million recorded the previous day. The spike in trading volume lifted the naira on both official and parallel markets, with the dollar falling to N1,375.31 at the NFEM, representing a 0.35 per cent gain. The number of transactions executed at the NFEM also increased by 16.79 per cent to 313 on Tuesday from 268 the day before. The spread between the official and parallel market rates remained relatively narrow compared with previous years, reflecting ongoing foreign exchange reforms and improved market liquidity. The narrowing gap to approximately 1.8 to 2.38 per cent signals improving alignment between official and street prices, down significantly from historic highs. CBN Governor Olayemi Cardoso has credited ongoing reforms for pushing Nigeria’s net foreign reserves from about $3 billion to over $40 billion. Nigeria’s gross external reserves have continued to rise, reaching $51.743 billion, supported by crude oil earnings and stronger foreign portfolio investment inflows. However, analysts caution that reserve growth alone may not be enough to ease parallel market pressure if dollar demand continues to exceed official supply.

The Central Bank of Nigeria determines the official NFEM exchange rate using a volume-weighted average of transactions executed in the market, while parallel market rates are driven by demand and supply among currency dealers. It is important to note that the Central Bank of Nigeria does not recognize the parallel market, as it has directed individuals who want to engage in foreign exchange transactions to approach their respective banks. Rates at which individuals buy or sell forex may differ from published rates because prices vary by location, dealer margins, and transaction volumes.

Market observers noted modest fluctuations driven by supply conditions, demand from importers, and recent developments in the petroleum sector, including the resumption of naira-based sales at the Dangote Refinery. The Reuters projection comes amid growing concerns by downstream operators that continued fuel imports are increasing demand for foreign exchange despite rising domestic refining capacity. Businesses and individuals relying on foreign exchange continue to monitor these daily movements closely, as they directly affect import costs, remittances, and everyday transactions.

Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts