Nigeria’s cost-of-living crisis may be deepening as the price of Premium Motor Spirit (PMS), popularly known as petrol, rises to about ₦1,500 per litre in parts of the country, raising fresh concerns over household budgets, transport costs and business operating expenses.
The latest price surge follows recent adjustments of the ex-depot price of petrol by Dangote Refinery and a rise in the landing cost of imported petroleum products.
The 700,000 barrels per day refinery located in Lagos has increased its gantry price of petrol four times in 22 days from ₦1,265 as of August 21, to ₦1,350 per litre, which took effect on September 12, 2026, reflecting a ₦185, or 15.9 per cent increase.
This has had a ripple effect on pump prices at retail stations across the country as they factor in logistics and other costs involved in procurement. Petrol now sells between ₦1,385 and ₦1,450 per litre, depending on location.
Nigeria’s downstream petroleum market has continued to experience volatility due to changes in crude oil prices, foreign exchange conditions, supply costs and domestic pricing decisions which influence pump prices.
Crude oil prices have been on an upward swing in recent times following the crisis in the Middle East involving the United States, Israel and Iran. The conflict has continued to disrupt the global supply of oil and gas products as the Strait of Hormuz remains closed, sending crude oil prices above $100 per barrel.
Brent, the international crude price benchmark, is trading at $103.5 per barrel, while West Texas Intermediate (WTI) goes for $101.5 per barrel on Friday, September 18, 2026.
This reflects a decline following easing concerns of supply disruption, with Saudi Arabia reportedly loading more crude via the Oman route.
At the point when Dangote Refinery gantry price went up, a barrel of crude had reached $108 per barrel.
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For millions of Nigerians, the impact of petrol price hike extends beyond filling stations as higher prices translate into increased transport fares, more expensive logistics, and higher production costs for businesses, particularly small and medium-sized enterprises that rely heavily on petrol-powered generators.
Transport operators are also under pressure as the rising cost of fuel pushes up the expense of running commercial vehicles. The additional burden is increasingly being passed on to commuters through higher fares, further squeezing disposable incomes.
Households face a similar challenge. As transportation and distribution costs rise, businesses may adjust the prices of food, consumer goods and services to protect margins, creating another channel through which fuel-price increases feed into general living costs.
Adeniyi Idowu, a commercial bus driver, who operates the Ogba-Oshodi route in Lagos, said the petrol price hike has further squeezed their profit margin as there is no commensurate increase yet in the transport fare they currently charge.
“The latest increase in the price of petrol is seriously affecting us as we are yet to increase what we charge passengers,” Idowu told Pinnacle Daily, adding that they currently buy petrol between ₦1,395 and ₦1,400 per litre in parts of Lagos.
A Lagos-based dispatch rider, Mr Thomas Umoro, lamented that operators are not having the best of time in the business with the high cost of petrol. He said they are currently incurring losses as customers are not willing to pay more.
” After buying fuel at a high cost, over ₦1,380, we are made to charge lower, which makes it difficult to operate sustainably,” Umoro stated.
A commuter, who identified himself as Emmanuel, said that from Mile 2 to Ogba, he used to spend between ₦1,800 and ₦2,000 to and fro, but now spends between ₦3,000 and ₦3,600 for the same trip due to the rise in petrol prices over the past seven months.
He noted that the latest price hike would put more pressure on household finances.
The development also comes at a difficult time for businesses already contending with high energy, financing and operating costs. Manufacturers and other productive-sector operators face the prospect of higher logistics and power-generation expenses, potentially affecting prices and competitiveness.
The petrol price escalation presents a wider economic challenge than the cost of fuel itself. Its effects ripple through transportation, food distribution, manufacturing, retail and household consumption.
The Nigeria Labour Congress (NLC) has raised concerns about the implications of the latest petrol price hike on the living conditions of the people.
In a statement on Wednesday signed by its National President, Joe Ajaero, NLC said it is a fact that once transportation costs rise because of fuel price increases, it affects other things, including rent, school fees, tariffs, and prices of food items.
While noting that the current wave of fuel cost in Nigeria was driven by the resurgence of conflict in the Middle East, the labour union argued that it shouldn’t have reached the current price level in the country. It said the fact that Nigeria is an oil-producing country and now has sufficient local refining capacity, even though it is substantially private sector-driven, should have made the cost affordable to the masses.
“As a nation, and as a people endowed with enormous fossil resources, we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales,” NLC stated.
It called on the government to come up with measures to cushion the effect of the cost of living crisis created by the high fuel cost.
The labour union urged the government to urgently give “reasonable” wage awards to workers, sell sufficient volumes of crude in Naira to domestic refineries, and create strategic crude oil and petroleum reserves to boost national storage capacity to meet energy needs in times of emergencies. “These measures will create jobs, economic value as well as deal with mutating security challenges,” NLC emphasised.
It contended that there is nothing wrong with the government subsidising the needs of citizens, especially in emergencies like this, adding that there is no oil-producing country that has not intervened by coming up with palliative measures.
It further stated that the fact that the government is making extra revenue beyond the budget target (windfall) due to high oil prices in the international market makes it more imperative for it to offer some palliatives.
It also raised concern about the rising importation of crude oil by local refineries, stating that it is “unreasonable and unacceptable and defeats the logic and purpose of local capacity.”
Oil and gas expert, Olabode Sowunmi, said crude oil is an international commodity, whose price is determined by market forces. He said there is an extent to which the government or regulatory authorities can influence the price other than resorting to subsidy.
While urging the government to sustain the ongoing economic reforms, Sowunmi said subsidies can come in various forms to mitigate costs of production.
Energy expert, Dr Ayodele Oni, said the high crude oil prices would enable the government to earn more revenues, which should be invested in infrastructural development for long-term sustainability, not consumption subsidy.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X