Transport costs are climbing once again across several parts of Nigeria as the price of petrol rises to as high as N1,400 per litre, putting fresh pressure on households and businesses already struggling with the country’s rising cost of living. The latest increase comes on the heels of a sharp jump in global crude oil prices, with Brent crude crossing the $100 per barrel mark amid renewed geopolitical tensions in the Middle East.
Fuel marketers have responded by adjusting ex-depot and pump prices across different regions, while Dangote Refinery resumed petrol loading in naira after a brief suspension, increasing its ex-depot price by over 13 percent to N1,215 per litre. Industry players attributed the increase to the limited availability of crude oil under the federal government’s naira-for-crude arrangement and the refinery’s reliance on imported crude.
The impact is already being felt on the streets. Commuters in Abuja and other cities say transport fares have risen by between 20 and 40 percent on several routes, while commercial drivers argue they have little choice but to charge more as fuel now consumes a larger share of their daily earnings. In Lagos, operators have begun increasing fares on busy routes, although competition has slowed widespread adjustments. In contrast, some cities such as Ibadan and Kano have yet to record significant fare hikes as transport operators wait to see if fuel prices stabilise.
Beyond transportation, many Nigerians fear the latest petrol price increase will trigger another wave of inflation, pushing up the prices of food, goods and essential services. Small business owners who rely on petrol-powered generators say operating costs have become increasingly difficult to manage, with some already considering raising the prices of their products and services. Residents across several states have urged the government to take urgent steps to stabilise fuel prices and ease the financial burden on citizens.
Energy experts say the current situation reflects the realities of Nigeria’s deregulated petroleum market, where domestic fuel prices are now closely linked to international crude oil prices and exchange rate fluctuations. They warned that unless global oil prices ease or more crude becomes available for local refining, Nigerians may continue to face volatile petrol prices and higher transport costs. With Brent crude now trading above $101 per barrel, analysts believe further increases remain a possibility if global supply concerns persist.
source: Dailytrust
