Nigerians are facing fresh pressure on their cost of living as rising international crude oil prices push petrol prices higher, with the latest increases expected to affect transportation, electricity generation, food distribution and business operations.
The impact is already being felt at filling stations. MRS has raised its petrol price from N1,300 to N1,400 per litre in Lagos and surrounding areas, representing a N100, or 7.7 per cent, increase. NNPC Limited stations have also moved from N1,275 to N1,375 per litre, while some independent marketers now sell at about N1,400, up from N1,360.
The latest adjustments followed an increase in the gantry price of petrol by Dangote Petroleum Refinery to N1,350 per litre. The refinery’s new price reflects the effect of higher crude oil prices and increasing expenses throughout the petroleum supply chain.
The development is expected to have a wider economic impact as transport operators adjust to higher fuel costs. Commercial bus operators, taxi drivers and tricycle operators may increase fares to offset their rising daily expenses, placing additional pressure on commuters.
Workers, students, traders and other Nigerians who depend on daily transportation are likely to feel the effect particularly quickly. Higher transport costs could also increase the cost of moving agricultural produce, raw materials and finished goods, creating another channel through which fuel prices could affect consumers.
Households that depend on petrol-powered generators are also exposed, as the increase will make alternative electricity generation more expensive. Small and medium-sized businesses could face an additional squeeze as fuel, transportation and power costs rise simultaneously.
Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, OGSPAN, attributed the immediate pressure to the sharp increase in international crude prices.
He explained that Nigeria’s largely deregulated downstream market means domestic petrol prices are increasingly affected by crude prices, refined-product costs, freight, exchange rates and other supply-chain expenses.
Obasi warned that a sustained crude price above $100 per barrel could lead to further increases, with businesses potentially passing higher operating costs to consumers or absorbing reduced profit margins.
Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change, similarly warned that rising fuel and logistics costs could weaken household purchasing power, particularly among low- and middle-income Nigerians.
She noted that Nigeria’s headline inflation currently stands at 15.43 per cent, while food inflation is 20.31 per cent, according to the National Bureau of Statistics.
Ibezim-Ohaeri added that prolonged increases could affect investment and employment while slowing the recovery of the non-oil economy.
She further identified continued conflict and disruptions around major shipping routes, including reduced oil flows through the Strait of Hormuz, as factors that could keep crude and refined petroleum prices elevated in the coming weeks.
