Nigeria is facing renewed pressure in its already strained energy sector as the Dangote Refinery has increased its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦1,275 per litre.
The latest adjustment, which took effect on March 21, represents the fifth price increase within the month, underscoring the persistent instability in the country’s downstream petroleum market. The new price marks a significant rise from an earlier ₦774 per litre, highlighting the rapid pace at which fuel costs have escalated in recent weeks.
Across the country, the impact is already being felt, with retail petrol prices now ranging between ₦1,200 and ₦1,300 per litre, depending on location and supply conditions. The surge has triggered widespread concern among Nigerians, many of whom are struggling to cope with the rising cost of living.
Petrol remains a critical commodity in Nigeria, powering not just transportation but also a large share of electricity generation through private generators. As a result, the price hike is expected to have a ripple effect across multiple sectors, driving up the cost of goods and services, including food, transportation, and basic household needs.
For many families, the situation is becoming increasingly unsustainable. The cost of fueling generators alone now consumes a significant portion of monthly incomes, particularly in urban areas where electricity supply remains inconsistent. Small businesses, which rely heavily on petrol-powered generators, are also bearing the brunt, with many forced to either increase prices or cut back on operations.
The latest development comes nearly three years after President Bola Ahmed Tinubu announced the removal of fuel subsidies in May 2023, a policy shift that dramatically altered the country’s fuel pricing structure. At the time, petrol prices jumped from about ₦185–₦200 per litre to over ₦500, with the government promising that the savings from subsidy removal would be redirected into infrastructure development and social welfare programs.
However, as prices continue to climb, many Nigerians are expressing frustration over what they describe as a lack of visible benefits from the policy. Critics argue that the expected economic relief has not reached ordinary citizens, while inflation continues to erode purchasing power.
With the national minimum wage currently at ₦70,000, there are growing concerns about affordability and the widening gap between income levels and living costs. Labour unions, civil society organizations, and economic analysts have all raised alarms, warning that the continued rise in fuel prices could push more Nigerians into poverty.
The situation has also reignited a national debate over energy policy. While some stakeholders are calling for the reintroduction of fuel subsidies to ease the burden on citizens, others argue that maintaining a market-driven pricing system is necessary for long-term economic stability and to attract investment into the sector.
Industry experts note that factors such as foreign exchange volatility, global crude oil prices, and supply chain challenges continue to influence domestic fuel pricing. Despite the operational presence of the Dangote Refinery—expected to reduce reliance on imports—price stability has yet to be fully achieved.
As tensions rise and public dissatisfaction grows, many Nigerians are looking to the government for urgent interventions that can cushion the impact of the latest increase. Whether through policy adjustments, targeted subsidies, or broader economic reforms, the coming weeks are likely to be critical in shaping public confidence and the future direction of Nigeria’s energy sector.
For now, the ₦1,275 per litre benchmark stands as yet another milestone in Nigeria’s evolving fuel pricing landscape—one that continues to test the resilience of both citizens and the economy.
