The price of Premium Motor Spirit (petrol) has risen sharply from about ₦175 per litre in May 2023 to between ₦1,300 and ₦1,400 in May 2026, representing an increase of roughly 643 per cent over three years, according to recent market reports.
Findings show that the surge in fuel prices was triggered by the removal of fuel subsidy shortly after President Bola Tinubu assumed office on May 29, 2023. The subsequent devaluation of the naira further intensified cost pressures in Nigeria’s import-dependent fuel market.
Immediately after the subsidy was removed, petrol prices jumped from around ₦175–₦200 per litre to over ₦500, marking the beginning of a sustained upward trend in pump prices across the country.
The Nigerian National Petroleum Company Limited (NNPCL), which was then the sole importer of petrol, later adjusted prices in response to the new deregulated framework, with costs continuing to rise as foreign exchange pressures persisted.
At various points in 2023 and 2024, petrol prices climbed above ₦1,000 per litre, with reports indicating that government-backed pricing mechanisms previously allowed sales below landing costs under what was described as “under-recovery.”
Former NNPCL Chief Financial Officer Umar Ajiya had previously explained that the arrangement effectively functioned as an implicit subsidy, with the government absorbing the difference between landing costs and pump prices.
The market briefly saw some relief in late 2024 following the entry of the Dangote Petroleum Refinery, which increased competition and pushed prices down to between ₦800 and ₦900 per litre in some areas.
However, prices have since surged again in 2026, with petrol now selling between ₦1,300 and ₦1,400 per litre, depending on location.
The latest increase has been linked to renewed global oil market disruptions, including tensions in the Middle East and reported instability affecting crude supply routes such as the Strait of Hormuz.
Analysts say the sustained rise in fuel prices has contributed significantly to inflationary pressure in Nigeria, driving up transportation costs and increasing the prices of goods and services nationwide.