Petrol Nears ₦1,400 as Fresh Price Hike Raises Transport and Business Costs
Petrol prices have climbed close to ₦1,400 per litre in parts of Nigeria following another increase in the wholesale price set by Dangote Petroleum Refinery, raising fresh concerns over higher transport, logistics and production costs.
The refinery increased its petrol gantry price from ₦1,265 to ₦1,350 per litre, an ₦85 increase. Retail prices subsequently moved to between about ₦1,380 and ₦1,400 in several locations, with variations depending on the supplier and distribution costs.
The latest adjustment is the fourth increase by the refinery since August 21, when its petrol price stood at ₦1,165 per litre. The cumulative increase has reached ₦185 in less than a month, coming at a time when international crude oil prices and the cost of replacing refined petroleum products have also risen.
The pressure is already spreading beyond filling stations. Transport operators have begun reviewing fares, while businesses that depend heavily on fuel for movement, logistics and power are facing higher operating expenses. Manufacturers have also warned that rising energy costs are making it harder for factories and small businesses to maintain production and compete.
The latest increase comes despite government efforts to reduce dependence on petrol through domestic refining, compressed natural gas and electric vehicles. Economists have called for expanded mass transit, improved electricity supply and greater adoption of alternative energy sources, while stressing that the success of fuel-market reforms should ultimately be measured by whether they reduce wider costs and improve living conditions for Nigerians.
