Fuel Price Hike: Nigerians Groan as Petrol Nears N1,200 Per Litre Amid Supply Strain
By Seth Omotade
The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has begun moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders in a bid to sustain domestic refining operations.
The development comes at a time when Nigerians are grappling with rising fuel prices across the country.
Recent adjustments
pushed the gantry price of petrol from N774 to N995 per litre, triggering sharp increases at retail stations nationwide.
In several states, the retail pump price has now exceeded N1,000 per litre, with some filling stations dispensing petrol at about N1,200 per litre, further intensifying economic pressures on citizens already struggling with the high cost of living.
Some residents in Ibadan have expressed concern over the recent hike in fuel prices as commercial drivers noted that the increase in petrol prices has risen by about 25 percent, forcing them to raise transport fares.
A commercial driver in Oke Ado, Ibadan, explained that transportation costs have been increasing steadily, but the latest fuel hike has worsened the situation for both drivers and passengers.
According to him, the fare from Apata to Oke Ado has increased significantly.
“The fare has been increasing steadily, but since the recent fuel hike, a trip that used to cost N400 to my office now costs N500. With serious negotiation, you could pay N600,” he stated.
Market women also complained that the rising cost of transportation has made it more expensive to move goods to markets and travel for trading activities, thereby affecting their businesses.
It was learnt that market women operating along the Oja Oba to Oke Ado axis, who previously spent N150 on transportation, now pay between N200 and N250, depending on negotiations and vehicle availability.
The Dangote Petroleum Refinery has, however, cautioned that sourcing crude internationally may not immediately reduce pump prices. A refinery source explained that the current Middle East crisis is affecting overall global energy prices.
“The current Middle East crisis is affecting overall global energy prices, crude oil, LNG and other fuels, and that has implications for refined product pricing globally,” the source said.
The refinery also highlighted constraints in domestic crude supply. It currently receives just five cargoes a month from the NNPC, instead of the 13 cargoes required under the naira-for-crude policy, forcing reliance on imported crude purchased at international market rates.
Industry stakeholders noted that increased domestic refining output could help moderate petrol prices.
The National Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said the naira-for-crude policy could influence pricing if fully implemented but warned that imported crude costs and global tensions remain a limiting factor.
