By NIyi Jacobs
The price of petrol in Nigeria has recorded a sharp increase of about 463% since the beginning of the administration of President Bola Tinubu, rising from approximately ₦238 per litre to as high as ₦1,340 per litre in parts of the country.
The development reflects major changes in Nigeria’s downstream petroleum sector following policy adjustments, including the removal of fuel subsidy and the deregulation of petrol pricing. These reforms have allowed market forces to determine pump prices, leading to significant volatility across different regions and marketers.
Before the policy shift, petrol prices were largely subsidised by the federal government, keeping pump prices relatively stable. However, following subsidy removal, fuel prices began adjusting upward in response to global oil prices, exchange rate pressures, and supply chain costs.
The sharp increase has had widespread economic implications, contributing to higher transportation costs, increased inflationary pressure, and rising costs of goods and services across the country.
While the government maintains that the reforms are necessary to reduce fiscal pressure and redirect public funds to infrastructure and social programmes, consumers continue to feel the impact of the rapid adjustment in fuel pricing.
The new pricing environment has also led to significant variations in pump prices across states and fuel stations, depending on logistics, supply, and market conditions
