Petrol May Hit ₦1,500/Litre as Dangote Raises Price
Nigerians may be heading into another round of transportation and food price increases as fresh pressure in the petroleum market pushes petrol and diesel costs higher, threatening household incomes and businesses already struggling with elevated living expenses.
The latest pressure followed an upward adjustment by Dangote Petroleum Refinery, which increased its Premium Motor Spirit, popularly known as petrol, gantry price by 6.7 per cent from ₦1,265 to ₦1,350 per litre, effective September 12, 2026.
The adjustment is expected to increase the acquisition cost of petrol for marketers and could eventually translate into higher pump prices across the country.
Industry projections indicate that motorists in Abuja could soon pay between ₦1,400 and ₦1,500 per litre, while prices at some filling stations could move beyond the ₦1,500 mark depending on transportation costs, supply conditions and marketers’ margins.
The situation could be more severe in northern cities such as Kano, Kaduna and Jos, where the additional cost of transporting petroleum products from coastal supply centres could push petrol prices to between ₦1,450 and ₦1,600 per litre.
Diesel users are also unlikely to escape the pressure, with prices expected to remain high as businesses contend with rising energy and logistics costs.
The latest market indicators put the seven-day average domestic petrol price at ₦1,308.33 per litre, while diesel averaged ₦1,855.97 per litre.
The renewed fuel-price pressure comes as developments in the international oil market drive crude and freight costs higher.
The seven-day average price of Brent crude was put at $98.74 per barrel, while Bonny Light averaged $104.65 per barrel. The exchange rate averaged ₦1,323.12 to the dollar during the same period.
The combination of higher crude prices, foreign exchange pressures and transportation costs has raised concerns that the latest petrol adjustment could quickly spread beyond filling stations into virtually every segment of the Nigerian economy.
Petrol remains a critical component of transportation, agricultural production, distribution and small-scale businesses, while millions of households and companies continue to depend on petrol and diesel generators because of unreliable electricity supply.
Consequently, higher fuel prices could increase the cost of moving food from farms to markets, commuting to work and school, operating small businesses and distributing essential commodities.
The Oil and Gas Service Providers Association of Nigeria has warned that the latest increase comes at a difficult period for households and businesses already battling rising costs.
Beyond the immediate effect at filling stations, economic observers are concerned about another round of inflationary pressure as transporters, manufacturers, traders and service providers attempt to transfer their additional operating expenses to consumers.
The consequences could be particularly severe for low- and middle-income Nigerians whose purchasing power has already been weakened by the high cost of essential goods and services.
There are also concerns about the impact on small and medium-sized enterprises, many of which depend heavily on privately generated electricity.
Businesses unable to absorb additional diesel and petrol expenses could increase prices, reduce their workforce, postpone expansion plans or operate for fewer hours.
Attention is consequently turning to the Federal Government over measures that could cushion the impact without returning Nigeria to the previous broad petroleum subsidy regime.
Among proposals being canvassed are increased crude allocation to qualified domestic refineries on competitive terms, a review of taxes and levies affecting locally refined petroleum products and targeted interventions for vulnerable households and critical sectors.
There are also calls for measures to reduce transportation and food distribution costs before higher fuel prices spread deeper into the economy.
The latest development underscores Nigeria’s continuing vulnerability to international crude prices, exchange-rate movements and petroleum distribution costs despite increased domestic refining capacity.
For ordinary Nigerians, however, the concern is more immediate.
If petrol reaches or crosses the ₦1,500-per-litre threshold in major cities, the consequences will not end at filling stations. The additional costs could find their way into bus fares, food markets, school transportation, electricity generation and prices of everyday goods and services, creating another difficult test for household budgets.
