Nigeria’s state-owned oil company, NNPC Ltd, has raised petrol prices by over 15%, marking the second increase in less than a month as the country moves away from a costly fuel subsidy program that has long strained its finances.
At NNPC fuel stations in Lagos, gasoline prices jumped to 998 naira per litre ($0.63) from 858 naira, while in Abuja, prices surged to 1,030 naira from 950 naira per litre. The hike prompted long queues at petrol stations as Nigerians reacted to the higher costs.
For the first time in over 30 years, Nigeria is now selling gasoline at full market prices. The shift comes after NNPC began purchasing gasoline from the Dangote Oil Refinery at 898 naira per litre, allowing the company to fully recover its costs.
This price increase is part of a broader policy move initiated by President Bola Tinubu, who scrapped the country’s popular fuel subsidy after taking office. The subsidy had become a massive drain on government finances, projected to cost $3.7 billion this year. However, as inflation soared and the cost-of-living crisis worsened, Tinubu briefly reintroduced a partial subsidy. By September, NNPC admitted it could no longer afford to import fuel, and shortages gripped the country.
Critics, including labor unions and manufacturers, warn that the latest price hike will exacerbate the cost-of-living crisis. Gasoline prices are particularly sensitive in Nigeria, where millions rely on fuel-powered generators due to the country’s unreliable electricity grid.
To address the country’s fuel supply needs, NNPC has begun selling crude oil to the Dangote Refinery in naira, with the refinery expected to fully meet domestic fuel demand. Industry experts note that with gasoline now sold at market rates, NNPC will no longer be the sole buyer of fuel from Dangote.
Billy Gillis-Harry, head of a local fuel traders association, confirmed that while they are seeking to purchase directly from the refinery, they currently still buy through NNPC.
