Nigeria’s petrol price has witnessed a dramatic increase over the past three years, climbing from about N175 per litre in May 2023 to as high as N1,300 per litre in May 2026. The sharp rise represents an increase of more than 640 percent and has significantly affected households, businesses, and transportation costs across the country.
The increase began shortly after President Bola Tinubu assumed office on May 29, 2023. During his inauguration speech, he announced the removal of fuel subsidies, a policy that had kept petrol prices relatively low for many years. Following the announcement, petrol prices quickly rose from around N175–N200 per litre to over N500 per litre.
At the time, the Nigerian National Petroleum Company Limited was the major importer of petrol into the country and subsequently adjusted pump prices upward. The situation became even more challenging when the Federal Government introduced exchange rate reforms, leading to a significant depreciation of the naira. Since petrol was largely imported, the weaker currency pushed import costs higher, resulting in further price increases.
Despite the removal of the official subsidy, the NNPC later sold petrol below its actual landing cost. Industry experts and international financial institutions described the arrangement as an indirect subsidy. For several months, petrol was sold at around N600 per litre, even when import costs were much higher.
In 2024, NNPC officials admitted that the company had been selling petrol below cost price and absorbing the difference. As a result, fuel prices gradually increased and eventually crossed the N1,000 mark.
A major development in the sector came with the entry of the Dangote Petroleum Refinery into petrol production. The refinery’s arrival sparked competition in the downstream market, helping to reduce petrol prices temporarily. During this period, motorists enjoyed prices ranging between N800 and N900 per litre.
However, the relief was short-lived. Renewed geopolitical tensions in the Middle East disrupted global oil markets and affected crude oil supply routes. The resulting increase in international oil prices pushed fuel costs upward once again. Refinery gate prices rose, and filling stations across Nigeria began selling petrol for between N1,300 and N1,400 per litre, depending on location.
The latest increase has intensified inflationary pressures. Transportation fares have risen sharply, while the prices of food and other essential goods have continued to climb. Many Nigerians are finding it increasingly difficult to cope with the rising cost of living.
To reduce dependence on petrol, the Federal Government introduced the Presidential Compressed Natural Gas (CNG) Initiative, encouraging motorists and transport operators to switch to CNG-powered vehicles. While the programme has gained attention, many observers say it has not yet delivered significant relief for most Nigerians.
Economic experts have urged the government to introduce targeted support measures for vulnerable citizens. Some have suggested direct cash transfers and transportation support programmes to help low-income households cope with rising fuel costs.
Industry stakeholders have also called on the government to use increased revenues from higher crude oil prices to provide relief for citizens. They warn that if global tensions persist, petrol prices could rise further and potentially exceed N1,500 per litre.
Despite growing concerns, the Federal Government has maintained that it will not return to fuel subsidies or impose price controls. Officials insist that a market-driven pricing system remains the best option for long-term economic stability and growth, even though it comes with short-term challenges for consumers.
The debate over fuel pricing continues as Nigerians grapple with the economic realities of one of the most significant energy reforms in the country’s history.
