Transport fares have increased in several parts of Nigeria following another rise in petrol prices, with pump prices reaching as high as ₦1,400 per litre in some locations.
The latest adjustment comes amid a sharp increase in global crude oil prices, with Brent crude climbing above $100 per barrel following renewed security tensions in the Middle East.
Fresh petroleum loading data obtained by marketers showed ex-depot prices rising across major depots in Lagos, Warri and Calabar.
In Lagos, A.A. Rano raised its ex-depot price from ₦1,275 to ₦1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time adjusted their prices to ₦1,275 per litre. Aiteo, Heyden and Nipco retained their existing prices, while Emadeb slightly reduced its ex-depot price from ₦1,278 to ₦1,274 per litre.
Dangote Refinery also resumed gantry loading of Premium Motor Spirit (PMS) in naira after suspending operations for one week. The refinery increased its ex-depot price from ₦1,075 to ₦1,215 per litre, representing a ₦140 or 13.02 per cent increase.
The refinery had temporarily adopted dollar-denominated pricing after citing difficulties in accessing sufficient crude oil under the Federal Government’s naira-for-crude arrangement.
Under the temporary pricing model, petrol was sold at $0.779 per litre, diesel at $1.087 per litre and Jet A1 aviation fuel at $0.942 per litre.
Across the country, commuters and transport operators say the latest increase has worsened the cost of living, with transport fares rising by between 20 and 40 per cent on several routes, particularly in the Federal Capital Territory.
Residents complained that while fuel marketers quickly increase pump prices whenever global oil prices rise, reductions are often delayed when international crude prices decline.
Several commuters in Abuja expressed concern that transportation now consumes a significant portion of their monthly income, while commercial drivers said they had little choice but to increase fares to remain in business.
Operators in Lagos have also begun adjusting fares on some major routes, although competition among transport providers has slowed widespread increases.
In Ibadan, however, transport fares have remained relatively stable despite petrol selling between ₦1,260 and ₦1,300 per litre. Commercial drivers said many passengers cannot afford higher fares, forcing operators to absorb some of the additional costs.
Fuel prices also increased across several other states. In Ilorin, petrol now sells between ₦1,255 and ₦1,305 per litre depending on the filling station. In Kaduna, pump prices have climbed to about ₦1,350 per litre after selling below ₦1,200 only weeks earlier.
In Adamawa, petrol is being sold for between ₦1,310 and ₦1,370 per litre, while independent marketers in Maiduguri now dispense fuel at between ₦1,370 and ₦1,390 per litre. The fare for road travel between Maiduguri and Kano has already risen from ₦20,000 to ₦25,000.
In Kano, however, transport fares have remained largely unchanged, with commercial tricycle operators saying they are waiting to see whether fuel prices stabilise before reviewing charges.
Industry experts attributed the continued increase in petrol prices to Nigeria’s deregulated downstream petroleum market, where local prices are influenced by global crude oil prices and foreign exchange fluctuations.
Energy law expert and University of Lagos lecturer, Professor Dayo Ayoade, said the Petroleum Industry Act allows market forces to determine petrol prices, limiting the government’s ability to intervene except in exceptional circumstances.
He noted that Nigeria’s crude oil supply commitments under existing financing arrangements have reduced the volume of crude available for domestic refining, limiting the effectiveness of the naira-for-crude initiative.
Ayoade warned that as long as international oil prices remain elevated due to geopolitical tensions, Nigerian consumers will continue to bear the impact through higher fuel prices.
Another industry analyst, Abdullahi Shehu, urged the Federal Government to sell crude oil to local refineries in naira at subsidised rates to reduce the cost of petrol for Nigerians.
Oil and gas economist, Dr. Marcel Okeke, also criticised the government’s economic reforms, arguing that they have failed to improve the welfare of ordinary citizens.
He maintained that Nigeria’s continued dependence on imported petroleum products has left the country vulnerable to international price shocks and called for greater investment in domestic refining capacity.
Meanwhile, global oil prices continued their upward trend on Thursday. Brent crude rose by 7.43 per cent to $101.10 per barrel, while U.S. benchmark West Texas Intermediate (WTI) increased by 6.77 per cent to $92.71 per barrel.
Analysts attributed the latest rally to renewed attacks on oil tankers in the Red Sea by Yemen’s Houthi rebels, raising fears of supply disruptions along one of the world’s most critical shipping routes.
Additional pressure on global oil supplies has come from reduced production in Kazakhstan following attacks on pipeline infrastructure and disruptions affecting crude exports from Iraq and Russia, further tightening the international energy market.
Adopted from News Break Naija Report
