The steady rise in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, has intensified economic hardship across Nigeria, with prices climbing to nearly N1,400 per litre in several parts of the country, triggering widespread anxiety among transporters, commuters, and businesses.

Findings across major cities indicated that the latest surge, driven largely by rise in the price of crude oil, is shrinking incomes, inflating transport fares, and worsening the cost-of-living crisis for millions of Nigerians.

With the price of crude oil hitting almost $120 per barrel last week before settling at $112 over the weekend as the Middle East crisis rages, Dangote also adjusted its gantry price from N1,175 to N1,245 per litre.

In response to the latest increase, marketers also adjusted pump prices across the country with new prices ranging from N1,310; N1,325; N1,370 and N1,400 per litre depending on locations.

In Lagos, commercial drivers say the rapid increase in fuel prices is eroding their profits and threatening their livelihoods. At several filling stations, prices fluctuated between N1,320 and N1,330 over the weekend, with some outlets briefly selling as high as N1,380 before adjusting downward.

At stations operated by the Nigerian National Petroleum Company Limited (NNPCL), pump prices were revised upward twice within days, reflecting the volatility in the downstream sector.

Toheeb Sulaimon, a commercial driver operating along the Ogba–Ikeja route, said his daily earnings have dropped drastically due to rising fuel costs and declining passenger traffic.

“When fuel was around N800 per litre, I could spend about N9,000 on fuel and still make up to N30,000 in a day. Now, everything has changed. The cost has doubled, but passengers are fewer,” he said.

Maduka Chibo, another operator, said his daily fuel expenditure has risen sharply to over N20,000, compared to about N10,000 when petrol sold at N800 per litre.

Northern cities hit N1,390

In Kano, petrol prices climbed as high as N1,390 per litre, with several independent marketers adjusting their rates upward in response to supply costs.

Stations such as AA Rano and others revised prices from around N1,330 to between N1,385 and N1,390.

The increase has triggered a ripple effect on transportation, with commercial tricycle operators hiking fares significantly.

A resident, Ismail Mabo, recounted being charged N4,000 for a trip that would normally cost about N1,000, accusing operators of exploiting the situation.

Another resident, Abba Kabir, warned that the sustained rise in fuel prices could force many car owners to abandon their vehicles.

“At this rate, people will stop using their cars. Some may even convert them to commercial use just to survive,” he said.

Abuja, Kwara record fresh hikes

In Abuja, pump prices have also surged, with several filling stations now selling between N1,361 and N1,370 per litre. The increase followed a fresh pricing template issued by MRS Oil Nigeria Plc to its dealers, signaling a new benchmark for the market.

The company pegged its pump price at N1,332 per litre, with variations depending on delivery and collection terms, further highlighting the influence of supply chain costs.

Across filling stations in the Federal Capital Territory, prices have continued to edge upward, deepening concerns among residents already grappling with high living expenses.

In Ilorin, Kwara State, the situation is no different. A survey showed petrol selling between N1,295 and N1,343 per litre, depending on the outlet.

Residents say the persistent increases are stretching household budgets to the limit. Oladuni Lateefat, a civil servant, said her family’s daily expenses have surged beyond manageable levels.

“What we used to manage with N4,000 daily is no longer enough. Transportation alone is taking a huge part of our income,” she said, adding that she may stop using her car to commute.

Businesses are also feeling the impact. A cement dealer in Ilorin reported that rising fuel costs have already pushed up the price of cement by N500, with fears of further increases.

South-South faces black market surge

In Port Harcourt and Yenagoa, petrol prices have risen to between N1,300 and N1,400 at official stations, while black market rates have soared as high as N1,800 per litre.

The disparity has worsened the burden on residents, particularly in areas where access to formal filling stations is limited.

Commuters say transport fares have doubled in some cases. A trip that previously cost N300 to N400 in Port Harcourt now goes for as much as N700, reflecting the direct pass-through effect of fuel costs.

Similarly, inter-state transport fares have increased, with journeys such as Yenagoa to Uyo rising from about N9,000 earlier in the year to N11,000.

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of petrol at its retail outlets to ₦1,130 per litre in Lagos and ₦1,165 per litre in Abuja. represents a reduction of ₦100 from the previous ₦1,230 per litre in Lagos and ₦95 from ₦1,260 per litre in Abuja.

Checks showed that the revised price was already reflected at several NNPC retail outlets in Lagos, including stations along Isheri Oshun Road, Apple Junction, and Ago Palace Way.

Similarly, motorists in Abuja observed the new price of ₦1,165 per litre at NNPC filling stations located in Jabi and Wuse.

The development offers slight relief to consumers who have faced repeated petrol price increases in srecent months.

The latest adjustment comes despite many oil marketers yet to reflect the earlier reduction in the gantry price of petrol by the Dangote Petroleum Refinery.

The refinery had recently reduced its gantry price by ₦100 per litre to ₦1,075, following a decline in global crude oil prices.

The earlier spike in crude oil prices was linked to rising geopolitical tensions involving the United States, Iran, and Israel, which raised fears of disruptions to global oil supply.

Particular concerns were centred around the Strait of Hormuz, through which a significant portion of the world’s oil shipments passes.

However, oil prices began to decline after Donald Trump indicated that the conflict could end soon, easing concerns about prolonged supply disruptions.

Market data showed that Brent crude, the global oil benchmark, dropped by about 8.45 per cent, falling from roughly $110 per barrel to around $92 per barrel.

The decline followed discussions among European ministers about the possible release of strategic oil reserves to stabilise global energy markets.

State governments have called for a forensic audit of Nigeria’s crude oil-backed borrowing arrangements, warning that opaque crude-for-loan and swap deals may be undermining inflows into the Federation Account.

The PUNCH earlier reported that the Nigerian National Petroleum Company Limited pledged 272,500 barrels per day of crude oil through a series of crude-for-loan deals totalling $8.86bn, according to an analysis of a report by the Nigeria Extractive Industries Transparency Initiative and the NNPC’s financial statements.

According to The PUNCH’s findings, NNPC has already fully repaid $2.61bn in loans, representing 29.4 per cent of the total credit facility, while $6.25bn or 70.6 per cent, remains outstanding. Also, out of the $8.86bn credit facility, only about $6.97bn has been received from seven crude-for-loan deals, as of December 2023.

However, state governments, through their commissioners of finance, are demanding an audit of these deals.