Petrol Price has soarred 643% under Tinubu as fuel cost jumps from N175 to N1,300 in three years.
NewsOnline Nigeria reports that the price of Premium Motor Spirit (PMS), popularly known as petrol, has surged from N175 per litre in May 2023 to as high as N1,300 per litre in May 2026, representing an increase of approximately 643 per cent since President Bola Tinubu assumed office.
The sharp rise in fuel prices followed President Tinubu’s announcement of fuel subsidy removal shortly after his inauguration on May 29, 2023, a policy decision that fundamentally altered Nigeria’s downstream petroleum market.
Industry analysts say the subsidy removal, combined with the naira’s devaluation and exchange rate reforms, significantly increased the cost of importing petrol, pushing pump prices beyond the reach of many Nigerians.
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Immediately after the subsidy was scrapped, petrol prices rose from between N175 and N200 per litre to over N500, with the Nigerian National Petroleum Company Limited (NNPCL) leading the initial price adjustments.
The situation worsened after the government floated the naira in June 2023, causing fuel prices to climb further and eventually exceed N1,000 per litre. However, the NNPCL later introduced a pricing arrangement described by the International Monetary Fund (IMF) as an “implicit subsidy,” selling petrol below landing costs while the Federal Government absorbed the shortfall.
For nearly a year, petrol sold for around N600 per litre despite higher import costs. In 2024, the NNPCL acknowledged that it had been selling the product below cost price, effectively confirming the existence of a subsidy mechanism.
Fuel prices climbed again after the launch of petrol production by the Dangote Petroleum Refinery, although increased competition initially helped moderate pump prices to between N800 and N900 per litre.
However, recent tensions in the Middle East and disruptions linked to the closure of the Strait of Hormuz triggered another spike in global oil prices, forcing fuel marketers and refiners to increase prices. As a result, petrol is now selling for between N1,300 and N1,400 per litre in several parts of the country.
The surge has intensified inflationary pressures, leading to higher transportation costs and increased prices for food and other essential commodities.
Energy economist Adeola Adenikinju called for targeted cash transfers to cushion the impact on vulnerable Nigerians, warning that rising fuel prices are worsening economic hardship for low-income households.
Similarly, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, urged the Federal Government to introduce measures to reduce the burden on citizens, arguing that increased crude oil revenues should translate into relief for consumers.
Meanwhile, the government has continued to promote its Presidential Compressed Natural Gas (CNG) Initiative as an alternative energy solution. However, many Nigerians say the programme has yet to significantly reduce transportation costs or offset the effects of rising petrol prices.
Despite growing calls for intervention, the Federal Government has ruled out a return to fuel subsidies or the introduction of price controls. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently reaffirmed that Nigeria would maintain a market-driven pricing system, insisting that subsidy removal remains irreversible.
With petrol prices projected to rise further if global geopolitical tensions persist, economists warn that inflation and cost-of-living pressures could remain major challenges for households and businesses in the coming months.
