Nigeria's Petrol Prices Hit N1,170–N1,300 per Litre Amid Global Oil Crisis and Subsidy Fallout
Nigeria's petrol prices have risen sharply to between N1,170 and N1,300 per litre in major cities, driven by turbulence in the international oil market and the lingering effects of the removal of fuel subsidies. This increase has intensified calls from the Nigeria Labour Congress (NLC) for urgent wage hikes to help workers cope with rising living costs.
Petrol Costs Skyrocket, Putting Pressure on Households Nationwide
In cities like Lagos and Abuja, pump prices have increased significantly from N825 to as high as N1,300 per litre, impacting transportation fares and grocery bills. Although Dangote Refinery reduced its ex-depot price from N1,175 to N1,075, retail outlets are struggling with instability caused by panic buying and black-market premiums. Families now pay 50-70% more for daily commutes, pushing overall inflation beyond the 30% mark.
What is Causing the Price Volatility?
Since the complete removal of subsidies in 2023, local fuel prices have followed unstable global crude prices, which have risen above $100 per barrel amid Middle East conflicts involving the US, Israel, and Iran. Nigeria continues to depend heavily on imports, despite the Dangote Refinery coming online, a situation worsened by a weakening naira and slow progress at public refineries. Industry observers warn that prices could reach N2,000 per litre without prompt action.
Key Players in the Fuel Crisis
Nigeria Labour Congress (NLC): Led by President Joe Ajaero, the union is organising protests and pushing for a N50,000 monthly wage increase, with strike threats if their demands are not met.
Federal Government and NNPC Ltd.: They control regulation and supply chains, with NNPC managing significant import costs while implementing relief measures such as rice distributions.
Dangote Refinery: With a capacity of 650,000 barrels per day, it adjusts prices to stay competitive but faces criticism over supply issues.
PETROAN and Industry Experts: Marketers advocate for crude oil swaps to secure fuel supplies, while analysts promote the development of more modular refineries to stabilise the market.
Strategies for Relief and Stability
To address the crisis, authorities should encourage Dangote and government refineries to reach maximum capacity and mandate local crude supplies to reduce imports by up to 70%. Short-term measures include targeted wage increases, subsidies for compressed natural gas (CNG) vehicles, and zero VAT on basic goods to support vulnerable households. In the longer term, investing oil revenues into reliable rail networks and electricity infrastructure could cut fuel demand by 20-30%.
