The Nigerian National Petroleum Company Limited (NNPCL) announced another petrol price increase, raising the cost of Premium Motor Spirit (PMS), commonly known as petrol, to N1,025 per litre in Lagos and surrounding areas. In Abuja, residents will now pay N1,060 per litre. This adjustment, reportedly made on Tuesday, marks the third price increase in just two months, reflecting the impact of the government’s ongoing deregulation policy.
Nigeria’s fuel market has been under significant shifts since the government embraced a deregulation policy. This policy, aimed at allowing fuel prices to be determined by market forces, directly links the cost of petrol to the dynamics of global oil supply and demand. As a result, Nigerian citizens are witnessing more frequent changes in fuel prices—fluctuations previously softened by government subsidies.
The latest increase from N980 to N1,025 in Lagos and N1,060 in Abuja signals the immediate impact of this market-driven approach. Deregulation, supporters argue, is intended to stabilize the economy in the long run, enabling private investments in the oil sector. However, for the average Nigerian, who is already battling with rising costs of living, this policy shift is raising concern.
With petrol now at over N1,000 per litre, Nigerians are left grappling with the impact on daily expenses. From transport fares to food prices, everything is tied to fuel costs. Many commuters in Lagos, for instance, have already noticed a hike in public transportation fares as operators adjust to the new petrol prices.
A Lagos resident shared, “It’s becoming very hard to keep up. Every time fuel prices go up, so does everything else. We don’t even get time to adjust.”
In Abuja, citizens echo similar sentiments. For many families, an increase in fuel costs means tighter budgets and hard choices. It’s not just about fueling cars; the price increase has a cascading effect on the cost of goods and services across the country.
Experts believe that Nigeria’s journey to a fully deregulated oil sector will take time and require balancing policies to reduce the immediate impact on citizens. While the government argues that deregulation could open doors for investments and improved services, many Nigerians feel the cost outweighs the benefits.
Some citizens are calling for more robust intervention to cushion the effects of these price hikes, especially for low-income households. Suggestions include targeted subsidies or transportation vouchers to ease the burden on the most vulnerable.