Nigerians are facing a fresh wave of economic hardship as the pump price of Premium Motor Spirit (PMS), popularly known as petrol, has surged to about ₦1,300 per litre in several parts of the country following renewed volatility in global oil markets.

The sharp increase represents roughly a 24 per cent jump from the previous average of about ₦1,050 per litre recorded only days earlier, further tightening the grip of rising energy costs on households and businesses.

Industry operators attribute the development to escalating tensions in the Middle East, which have pushed international crude oil prices to about $110 per barrel, up from around $102 per barrel in recent days.

The spike in crude prices has rapidly filtered into Nigeria’s downstream petroleum market, where petrol prices are largely influenced by global supply dynamics since the deregulation of the sector.

Alongside the petrol increase, the price of Automotive Gas Oil (AGO), commonly known as diesel, has also climbed sharply.

At outlets operated by MRS Oil Nigeria, diesel now sells for about ₦1,380 per litre, up from ₦1,100 per litre, while stations run by Nigerian National Petroleum Company Limited retail the product at around ₦1,680 per litre in Lagos and surrounding areas.

Across several cities, motorists and commuters are already feeling the impact of the rising pump prices.

In Ibadan and neighbouring communities in Oyo State, petrol prices now range between ₦1,200 and ₦1,300 per litre, compared to the ₦1,020 to ₦1,080 range recorded before the latest adjustment.

A member of the Independent Petroleum Marketers Association of Nigeria (IPMAN), who spoke anonymously, attributed the increase to the rising landing cost of imported fuel.

According to the marketer, the cost of lifting petrol from depots in Lagos has climbed to about ₦1,175 per litre, forcing retailers to adjust their pump prices to cover logistics and operational expenses.

“The pump price varies depending on the destination,” the marketer explained.

“While the price in Ibadan hovers between ₦1,200 and ₦1,300 per litre, places like Ogbomoso and the Oke-Ogun axis could record even higher prices because of transportation costs.”

In the Federal Capital Territory, Abuja, the increase has been even more dramatic.

Petrol which sold for around ₦880 per litre just a week ago has risen to more than ₦1,300 per litre in many filling stations across the city.

Industry sources link the sudden spike to the recent price adjustment by the Dangote Petroleum Refinery, which raised the gantry price of petrol to ₦1,175 per litre from ₦995 per litre.

The refinery also reviewed the gantry price of diesel to about ₦1,620 per litre, up from ₦1,430 per litre.

In a notice issued to oil marketers, the refinery attributed the adjustment to prolonged instability in the global oil market and the sharp rise in crude oil prices.

The new depot price has triggered a chain reaction across retail stations, resulting in four different price increases in Abuja within the past week.

Petrol sold for about ₦880 per litre at the beginning of the week before rising to ₦960 and later ₦1,080 over the weekend.

By early yesterday, several stations had raised the pump price again to about ₦1,103 per litre before climbing further toward the ₦1,300 mark.

The latest surge has immediately affected transportation costs within the capital city.

Checks at major bus stops in Area 8, Garki and the Central Area revealed that transport fares on several routes have increased by more than 100 per cent.

Passengers who previously paid about ₦800 for certain routes now pay as much as ₦1,500.

Similarly, commuters travelling from Area 8 to Nyanya now pay about ₦1,000, double the ₦500 fare charged just days earlier.

Transport operators say the increases are unavoidable given the rising cost of fuel.

An Abuja-based commercial driver, Sani Ibrahim, said drivers have little choice but to adjust fares in order to remain in business.

“Fuel is above ₦1,200 in some stations now,” he said.

“If we don’t increase transport fares, we cannot cover our costs.”

Energy experts say the development was largely expected given the rapid increase in international crude oil prices.

One analyst explained that refining margins are extremely narrow, meaning even small changes in crude prices can significantly affect the final price of refined products.

“The margins for refineries are very small, sometimes just around 1.3 to 1.5 per cent,” the expert said.

“So when crude oil increases, the price of petrol must also increase. That is how the market works.”

The analyst added that holding older stock does not protect refineries from rising costs.

“Old stock will eventually be replaced by new stock purchased at the higher crude price,” he explained.

“So the price adjustment becomes inevitable.”

Another industry expert, Olufemi Idowu, a partner at Kreston Pedabo, said Nigeria’s heavy reliance on imported refined products continues to expose the economy to global oil market shocks.

He noted that although the Dangote Petroleum Refinery has a capacity of about 650,000 barrels per day, the facility currently receives less than half of the crude supply it requires from local oil producers.

According to him, the refinery needs about 12 cargoes of crude oil to operate optimally but currently receives only about five cargoes.

The shortfall means the refinery must source additional crude supplies from international markets, which often come at higher prices.

“The rise in oil prices should ordinarily boost Nigeria’s economy,” Idowu said.

“But in reality, households and businesses are burdened by rising fuel costs because the country still relies heavily on imported refined products.”

Industry operators say logistics and transportation costs also play a significant role in determining the final pump price of petrol.

The Public Relations Officer of IPMAN, Chinedu Ukadike, confirmed that marketers currently buy petrol from tank farm operators at around ₦1,200 per litre.

According to him, many marketers source their products from storage operators such as Pinnacle Oil and Gas rather than directly from the refinery.

“The price at the refinery increased to ₦1,175 per litre from ₦995,” Ukadike explained.

“However, marketers currently purchase from tank farms at about ₦1,200 per litre.”

He said logistics costs, transportation expenses and retail mark-up ultimately determine the final pump price at filling stations.

“As a result, pump prices in Lagos may range between ₦1,250 and ₦1,300 per litre,” he said.

“In locations outside Lagos, it could rise to ₦1,350 or even higher.”

For many Nigerians, the new price regime signals another difficult phase for the economy.

With transport fares rising sharply and businesses facing higher operating costs, analysts warn that the petrol increase could trigger another round of inflation across the country.

For commuters standing at crowded bus stops across Nigeria’s cities, the impact is already clear: higher fares, longer waits and growing anxiety about how much petrol will cost tomorrow.