Petrol Hits N1,400/Litre, Transport Costs Soar Nationwide

Transport fares have increased across several parts of Nigeria following the latest rise in petrol prices, with the product now selling for as much as N1,400 per litre.

The increase comes amid a sharp rise in global crude oil prices, as Brent crude climbed above $100 per barrel due to renewed tensions in the Middle East.
Fresh loading data from petroleum marketers showed increases in ex-depot prices across Lagos, Warri and Calabar. In Lagos, A.A. Rano raised 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 N1,275. AITEO, HEYDEN and NIPCO maintained N1,275 per litre, while EMADEB reduced its price slightly from N1,278 to N1,274.
Dangote Refinery also resumed gantry loading of Premium Motor Spirit (PMS) in naira after a week-long suspension and increased its ex-depot price to N1,215 per litre from N1,075, representing a 13.02 per cent increase. The refinery had earlier introduced a temporary dollar-denominated pricing template, citing challenges in accessing enough crude oil under the Federal Government’s naira-for-crude arrangement.
The refinery had sold PMS at $0.779 per litre, diesel at $1.087 and Jet A1 aviation fuel at $0.942 per litre under the temporary pricing system. It explained that most of its operational expenses were dollar-based due to crude oil imports.
Residents across the country expressed frustration over the latest fuel price increase, accusing marketers of quickly raising pump prices whenever global crude prices rise but delaying reductions when international prices fall. They noted that petrol prices did not drop below N1,000 per litre even when Brent crude previously declined to around $70 per barrel.
In the Federal Capital Territory, civil servant Grace Okeke said the rising transport costs now consume a larger portion of her salary, while Musa Ibrahim warned that higher transportation costs would inevitably increase food prices. Commercial drivers also lamented the situation, saying constant fuel price changes make business planning difficult and force them to adjust fares to remain in operation.
Commuters in Abuja reported paying between 20 and 40 per cent more on several routes, while transport operators in Lagos have begun increasing fares on busy routes despite stiff competition. In Ibadan, however, fares have remained relatively stable even though petrol sells between N1,260 and N1,300 per litre, with operators saying passengers cannot afford constant fare increases.
Several marketers in Ilorin also raised pump prices by between N35 and N85 per litre, while residents warned that the development would further increase the prices of goods and services. Similar concerns were expressed in Kaduna, Adamawa and Maiduguri, where petrol prices have climbed significantly, forcing transport operators and small business owners to review their operating costs.
Industry stakeholders said fluctuating petrol prices have discouraged marketers from loading products, while owners of petrol-powered businesses such as barbers warned they may have no choice but to increase service charges if the trend continues.
Energy law expert Professor Dayo Ayoade of the University of Lagos attributed the situation to the realities of Nigeria’s deregulated petroleum market, explaining that local fuel prices now reflect international crude oil prices and exchange rate movements. He said the Petroleum Industry Act limits government intervention in fuel pricing and noted that Nigeria’s limited crude supply under the naira-for-crude arrangement has exposed the country to global oil price shocks.
Another analyst, Abdullahi Shehu, urged the Federal Government to subsidise crude oil supplied to local refineries in naira to reduce petrol prices for Nigerians. Oil and gas economist Dr. Marcel Okeke also argued that the government’s reforms have not improved the welfare of citizens, insisting that continued dependence on imported petroleum products has worsened the situation.
Meanwhile, Brent crude rose to $101.10 per barrel, while U.S. benchmark West Texas Intermediate (WTI) climbed to $92.71 per barrel. The latest rally has been driven by renewed attacks on oil tankers in the Red Sea, disruptions to oil production in Kazakhstan, and supply concerns affecting Iraqi and Russian exports, raising fears of further increases in global oil prices and domestic petrol costs.