Millions of Nigerians are grappling with the harsh economic impact of a fresh petrol price hike, as transport fares surge and households struggle to keep up with rising living costs.
The increase follows a decision by the Dangote Petroleum Refinery to raise the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦1,075 to ₦1,175 per litre.
Across cities such as Lagos and Abuja, commuters and transport operators say the adjustment is already hitting their pockets.
Commercial bus driver Abdulrahman Oyedele in Igando said operators had little choice but to increase fares to avoid operating at a loss.
“With petrol costing more, we have no choice but to raise fares. Even short trips now take a bigger chunk of people’s income. Nigerians are struggling more than ever just to get to work or school,” he said.
Rising Fuel Costs Squeeze Households
Private vehicle owners are also feeling the pressure. Kunle Adeyemi, a Lagos resident, said his monthly fuel spending had jumped sharply in recent weeks.
“My fuel expenses have increased by almost 40 per cent in less than a month. It means less money for groceries and other essentials,” he explained.
For small businesses, especially those reliant on transportation, the price hike has triggered higher operating costs.
Sade Olatunji, a textile trader at Oshodi Market, said moving goods from suppliers now costs significantly more.
“We are forced to increase prices for customers, but sales are already slow because people are cutting back. We expected strong sales ahead of the Eid celebration, but the petrol increase has affected our business,” she said.
Students are also adjusting their budgets as transport costs rise. Chinaza Okoro, a final-year student at Lagos State University, said commuting has become increasingly expensive.
“My allowance barely covered food and transport before. Now I spend even more just getting to lectures and my part-time job,” she said.
Global Oil Prices Driving Increase
Industry sources say the latest price adjustment reflects rising global crude oil prices.
Benchmark Brent crude climbed above $101 per barrel, while West Texas Intermediate traded around $96.
The surge has been linked to tensions involving the United States, Israel and Iran, which have disrupted oil supply routes including the strategic Strait of Hormuz.
Since the outbreak of the Middle East conflict on February 28, petrol prices in Nigeria have risen multiple times, recording a cumulative increase of about 47 per cent in six weeks.
Depot operators have temporarily halted sales in some locations while adjusting retail prices.
In parts of Lagos and Abuja, petrol was already selling for as high as ₦1,330 per litre before the latest adjustment.
Diesel prices have also climbed, reaching around ₦1,620 per litre in some depots, further raising costs for industries and logistics operators.
Oil Price Surge Could Benefit Nigeria
Despite the domestic pressure, analysts say Nigeria could benefit from higher global oil prices.
The Nigerian Economic Summit Group said the country could earn between ₦2.3 trillion and ₦30 trillion in additional revenue depending on how long the global energy shock lasts.
However, the group warned that policy discipline would be critical to ensure the windfall strengthens the economy rather than fuels inflation.
According to the NESG, Nigeria’s position as an Atlantic crude exporter means it is less exposed to supply disruptions in the Strait of Hormuz compared with Gulf producers.
Still, the group cautioned that inflation and structural challenges in the oil sector could limit the potential gains if policies are poorly managed.
Calls for Stronger Local Refining
Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said Nigeria must expand domestic refining capacity to reduce vulnerability to global supply shocks.
For decades, the country relied heavily on imported petroleum products despite being a major crude oil producer.
He said strengthening local refining and improving distribution infrastructure would help stabilise supply and protect the economy during global disruptions.
Government Monitoring Situation
The Minister of Finance, Wale Edun, said the government is closely monitoring the escalating geopolitical tensions and reviewing policy options to cushion the impact on households and businesses.
According to him, the Economic Management Team is coordinating fiscal, monetary and energy policies to manage volatility and preserve Nigeria’s economic stability.
