The Nigerian National Petroleum Company Limited (NNPCL) has once again reviewed upward the pump price of Premium Motor Spirit (PMS), commonly known as petrol. The new development, which took effect this week, has seen motorists in Lagos now pay ₦992 per litre, up from ₦865, while those in Abuja are paying ₦955, an increase from ₦890.
This adjustment translates to a ₦127 increase in Lagos and ₦65 in Abuja, fuelling public frustration and heightening fears of another wave of inflation across essential sectors.
Why the Sudden Adjustment?
Industry analysts point to several underlying factors behind the latest pump price hike. Global crude oil prices have remained volatile, hovering around levels that keep importation costs high for marketers. With the NNPCL still being the dominant supplier, any shift in its pricing template quickly ripples across the entire downstream market.
Dangote Halt Sales
The recent shutdown of sales by Dangote Refinery is a major factor, With distribution challenges mounting, the refinery’s halting of gantry sales has become a major blow to the industry.
Analysts emphasise that restoring operational efficiency across all major supply channels will be vital to achieving the government’s target of energy sufficiency and price stability in the downstream sector.
Pressure Mounts on Transport and Household Costs
Transporters have already begun hinting at fare increases as the cost of petrol remains a major determinant of operational expenses. For commuters, particularly in Lagos and Abuja, this means higher transportation fares and rising food prices, as logistics costs inevitably surge.
Small businesses that rely on petrol generators to power operations are also expected to feel the pinch. The timing of this increase, coming when Nigerians are still adjusting to previous fuel and electricity tariff hikes, has triggered renewed calls for targeted government intervention.
The Bigger Picture: Local Refining as the Way Forward
Experts believe that the recurring petrol price increases underscore the urgency of scaling up local refining capacity. With the Dangote Refinery gradually getting into full production and several modular refineries coming on stream, there is cautious optimism that Nigeria may soon achieve price stability in the downstream sector.
However, until local refineries can fully meet domestic demand, Nigeria will continue to be exposed to global price shocks and forex pressures. The government’s “Decade of Gas” initiative is also expected to play a crucial role in diversifying energy sources and reducing dependence on imported petrol.
What Nigerians Are Saying
Reactions have been swift and emotional. From social media outrage to street-side debates, many Nigerians are questioning the sustainability of these recurring price hikes. Some argue that deregulation should have led to competition and efficiency, not continuous upward reviews.
Others, however, see this as a necessary pain on the road to energy self-sufficiency. “Until we refine what we consume, this will not stop,” said one industry stakeholder.
Looking Ahead
For now, motorists and businesses must brace for a more expensive fuel market, while policymakers face renewed pressure to fast-track local production and stabilise the naira.
As Nigeria’s energy transition unfolds, one thing is clear the price of petrol has once again become a mirror reflecting the nation’s economic realities.
