Petrol Price Surges 643% in Nigeria as Fuel Crisis Deepens Amid Global Oil Shocks
Nigeria’s fuel market has witnessed a dramatic and painful transformation as the price of Premium Motor Spirit (petrol) skyrocketed by about 643% within three years, climbing from N175 in 2023 to as high as N1,300 per litre in 2026. The surge has left millions of Nigerians grappling with rising transport fares, higher food prices, and an overall spike in the cost of living.
The sharp increase is largely tied to the removal of fuel subsidies in May 2023 by President Bola Tinubu shortly after taking office. The policy, combined with the devaluation of the naira, significantly raised the cost of importing fuel, pushing pump prices above levels many citizens could afford almost immediately.
Over time, petrol prices fluctuated further due to global and domestic factors. At one point, prices rose above N1,000 following exchange rate reforms, while temporary government-backed “under-recovery” payments by the Nigerian National Petroleum Company Limited helped moderate costs. However, by 2024, those measures faded, and prices climbed again as Nigeria’s oil market became fully deregulated.
The situation worsened in 2026 following renewed geopolitical tensions in the Middle East, including disruptions around the Strait of Hormuz. These global shocks pushed up crude oil prices, leading to fresh increases in domestic fuel costs. Even with local production from the Dangote Petroleum Refinery, pump prices have now stabilized between N1,300 and N1,400 per litre, depending on location.
Economists and energy experts warn that the ongoing fuel crisis is deepening inflation and widening inequality. While the government maintains its stance against returning to subsidies or introducing price controls, experts are calling for targeted cash transfers and transport relief measures to cushion vulnerable Nigerians. Meanwhile, some industry leaders warn that prices could climb even further if global tensions persist.
source: punch