By Mary Onyia
Millions of Nigerians are facing fresh economic pressure after Dangote Petroleum Refinery increased its ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to N1,215 per litre, a 13 per cent increase from N1,075 per litre. The adjustment, which took effect as the refinery resumed gantry loading in naira after a week-long suspension, immediately rippled through the economy, with commercial transport operators in many cities raising fares from Wednesday while businesses began adjusting the prices of goods and services to reflect higher fuel costs.
The impact was immediately felt by commuters. One of them, I.G., who travelled from a suburb in Ogba to Magodo Gate on Wednesday, said transport fares increased at virtually every stage of his journey compared with what he paid a day earlier. “To my greatest surprise, I had to pay an extra N100 at almost every stop from Ogba to Magodo. I left home without expecting the increase, so it came as a real shock and disrupted my transport budget for the day,” he said.
Transport operators blamed the fare increase on the rising cost of petrol. Tony, a commercial tricycle (Keke Napep) operator on the Ogba–Ojodu Berger route, said drivers had little choice but to adjust their fares. “We charge passengers based on what we pay for fuel. It is really not our fault,” he said. “Many filling stations are not selling petrol, and those that are open have increased their pump prices. The government needs to address the situation because we are also struggling.” Similar complaints were echoed by transport operators and commuters across Lagos as the latest fuel price increase took effect.
The refinery said the increase reflected the sharp rise in international crude oil prices, which has driven up refining costs. The new pricing came barely 24 hours after it raised its coastal loading price for petrol and has triggered fresh increases across major fuel depots. In Lagos and other supply hubs, ex-depot prices climbed to as much as N1,350 per litre, while several filling stations adjusted pump prices to between N1,300 and N1,400 per litre, raising fears of another inflationary cycle. While the return to naira-denominated truck loading is expected to improve fuel supply and ease recent disruptions, the higher ex-depot price means consumers are unlikely to enjoy any immediate relief.
Energy economists said the latest increase underscores the need for urgent policy action to prevent a further spike in inflation. “The government must sustain the naira-for-crude initiative, guarantee adequate crude supply to local refineries and strengthen mass transit support to cushion the impact on ordinary Nigerians,” one industry analyst said. They also urged authorities to promote greater competition in domestic refining and improve fuel distribution networks to help moderate pump prices and reduce the frequency of sharp increases that continue to weigh heavily on households and businesses.