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

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