Fuel Marketers Warn Rising Petrol Prices Worsening Nigeria’s Cost-of-Living Crisis

Fuel Marketers Warn Rising Petrol Prices Worsening Nigeria’s Cost-of-Living Crisis

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised fresh concerns over Nigeria’s worsening cost-of-living crisis, warning that persistent increases in petrol prices are eroding household incomes and putting severe pressure on businesses.

In a statement issued by its National President, Billy Gillis-Harry, the association said the steady rise in pump prices in recent weeks has triggered a ripple effect across the economy—driving up transportation fares, inflating food prices, and weakening consumers’ purchasing power.

PETROAN acknowledged ongoing reforms in the oil and gas sector but stressed that urgent government intervention is needed to cushion the hardship. The group warned that failure to act swiftly could further deteriorate living conditions and undermine economic stability.

According to the association, the impact is already severe for ordinary Nigerians, with many households struggling to meet daily expenses as the cost of mobility and essential goods continues to climb. Small and medium-sized enterprises are also under pressure, as rising diesel and petrol costs increase operating expenses, reduce profit margins, and slow productivity.

While global oil market dynamics continue to influence domestic fuel pricing, PETROAN insisted that local policy actions remain critical in mitigating the impact. The group called for immediate, targeted relief measures, including transportation support schemes to reduce commuting costs and interventions to stabilise food prices for vulnerable households.

READ ALSO:

• Akpabio Backs Anioma State Creation, Proposes Asaba as Capital
• Man Arrested After Shouting ‘No Water, No Light’ During Bago’s Suleja Visit
• US 15-Point Plan Reportedly Conveyed to Iran via Pakistan

The association also highlighted the need to strengthen Nigeria’s energy framework through improvements to the Naira-for-Crude policy, which is designed to boost local refining by allowing domestic refineries to purchase crude oil in naira. PETROAN urged authorities to ensure the policy is effectively implemented to stabilise supply and reduce dependence on imports.

In addition, the group called for the full and sustained operation of the Port Harcourt Refinery, managed by the Nigerian National Petroleum Company Limited, noting that increased domestic refining capacity would ease supply constraints and help moderate fuel prices over time.

PETROAN further advocated accelerated adoption of alternative energy sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), describing them as more affordable and sustainable options for both transportation and household energy use.

Beyond short-term interventions, the association emphasised the need for long-term collaboration between government and industry stakeholders to ensure energy security, price stability, and a resilient fuel supply chain.

Adding to the policy recommendations, the Director-General of the Centre for the Promotion of Public Enterprises, Muda Yusuf, called for a broader strategy to address the crisis. He advised expanding domestic refining capacity, granting tax waivers on solar energy equipment, and scaling up efficient public transportation systems to reduce commuting costs.

Yusuf also stressed that improving Nigeria’s electricity infrastructure remains a critical long-term solution to stabilising energy costs across the economy. He cautioned monetary and fiscal authorities against premature policy easing, urging prudent management of oil revenue windfalls to strengthen foreign exchange reserves and support productive sectors.

Economic analysts note that although Nigeria’s headline inflation has shown signs of moderation, underlying pressures—driven by energy costs and global market volatility—remain significant. They warn that without forward-looking policies, recent gains could quickly reverse.

Experts further recommend building strategic fuel reserves to cushion supply disruptions and prevent sudden price spikes, as well as accelerating nationwide CNG conversion programmes to reduce dependence on petrol.

With fuel costs continuing to shape inflation and economic activity, stakeholders say coordinated and decisive action is essential to protect households, sustain businesses, and maintain macroeconomic stability.

Fuel Marketers Warn Rising Petrol Prices Worsening Nigeria’s Cost-of-Living Crisis