Nigerians are facing renewed economic pressure after the pump price of Premium Motor Spirit (PMS), commonly known as petrol, surged to about ₦1,300 per litre in several parts of the country, up from around ₦1,050 per litre just days earlier.
The sharp increase—representing roughly a 24 per cent jump—comes amid rising crude oil prices in the international market, which recently climbed to about $110 per barrel following escalating tensions in the Middle East.
Fuel Prices Climb Across Major Cities
The impact of the increase has been felt across multiple states. In Ibadan and surrounding communities in Oyo State, petrol now sells between ₦1,200 and ₦1,300 per litre, compared with the previous range of ₦1,020 to ₦1,080.
Similarly, in Abuja, the product rose dramatically from about ₦880 per litre a week ago to over ₦1,300 in some retail outlets. Filling stations reportedly adjusted prices multiple times within the past week as market conditions shifted.
Diesel prices have also increased. At MRS outlets, Automotive Gas Oil (AGO) now sells for about ₦1,380 per litre, up from ₦1,100, while some Nigerian National Petroleum Company Limited (NNPC Ltd.) stations in Lagos and nearby areas sell diesel at approximately ₦1,680 per litre.
Marketers Cite Rising Landing Costs
A member of the Independent Petroleum Marketers Association of Nigeria (IPMAN), who spoke anonymously, said the increase was driven by rising landing costs and logistics expenses.
According to the marketer, the cost of lifting petrol from depots in Lagos has climbed to about ₦1,175 per litre. Retail prices then vary depending on transportation costs and location.
IPMAN’s National Public Relations Officer, Chinedu Ukadike, also confirmed that marketers are currently purchasing petrol from tank farm owners such as Pinnacle Oil and Gas at around ₦1,200 per litre.
“The final pump price depends on logistics, transportation and marketers’ margins,” Ukadike said, noting that petrol may sell between ₦1,250 and ₦1,300 per litre in Lagos, while prices outside the city could exceed ₦1,350.
Dangote Refinery Adjusts Gantry Prices
The latest price adjustments follow a hike in gantry prices at the Dangote Petroleum Refinery. Petrol prices at the refinery increased to about ₦1,175 per litre from ₦995, while diesel rose to ₦1,620 per litre from ₦1,430.
The refinery attributed the change to prolonged instability in global oil markets, which has pushed crude prices significantly higher in recent days.
Transport Costs Surge
The rising cost of fuel has already triggered a spike in transportation fares across several cities.
In Abuja, fares on some routes have jumped by more than 100 per cent. For instance, a trip from Area 8 to Nyanya, which previously cost about ₦500, now costs around ₦1,000. Another route that used to cost ₦800 has increased to about ₦1,500.
In Ibadan, commuters are also feeling the impact. Transport fares from Sango to the University of Ibadan have risen from ₦200 to between ₦250 and ₦300, while trips from Dugbe to Ojoo now cost about ₦900 compared to the earlier ₦600.
Experts Warn Prices Could Hit ₦2,000
Industry stakeholders warn that fuel prices could climb even higher if global tensions persist.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said petrol could rise to as much as ₦2,000 per litre, while diesel could approach ₦3,000 per litre if the Middle East conflict continues to disrupt global supply.
PETROAN President Billy Gillis-Harry urged the Federal Government to accelerate the rehabilitation of Nigeria’s refineries, including those in Port Harcourt and Warri, to reduce dependence on volatile international markets.
He warned that sustained fuel price increases could worsen inflation, raise the cost of goods and services, and deepen economic hardship for households and businesses.
Experts Call for Stronger Domestic Refining
Energy experts argue that expanding domestic refining capacity is crucial to stabilising fuel prices.
Professor Wumi Iledare, a petroleum economist, noted that although rising crude prices typically translate into higher fuel prices, local refining could help cushion some of the impact by reducing freight costs and other import-related expenses.
Similarly, economist Muda Yusuf called for policies that support indigenous refining investments, including reliable crude supply, improved distribution infrastructure, and favourable fiscal measures.
According to analysts, while higher crude prices could boost government revenue, ordinary Nigerians may not immediately benefit due to inflationary pressures and the country’s heavy reliance on imported refined products.
Dangote Refinery Assures Steady Supply
Despite the price surge, the Dangote Petroleum Refinery has assured Nigerians of uninterrupted fuel supply.
Managing Director David Bird said the facility, which can produce between 50 million and 55 million litres of petrol daily, has sufficient capacity to meet Nigeria’s estimated daily consumption of about 35 million litres.
He stressed that domestic refining provides Nigeria with greater supply security, particularly during periods of global energy market disruptions.
“As long as we receive crude from the government and NNPC, we will continue to meet Nigeria’s fuel requirements,” Bird said.
Government Budget Under Pressure
The development comes as Nigeria’s 2026 budget was benchmarked on crude oil at $64.85 per barrel, daily production of 1.84 million barrels, and an exchange rate of ₦1,400 to the dollar.
With crude prices now around $110 per barrel, analysts say government revenues may increase significantly. However, the benefits could be offset by rising domestic fuel prices and the broader economic impact on citizens.
As global energy markets remain volatile, experts warn that Nigerians may have to brace for further increases in fuel and transportation costs in the coming weeks.
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