Rising Petrol Prices Push Transport Fares Higher Across Nigeria

Transport fares have increased in several parts of the country following a fresh rise in the pump price of Premium Motor Spirit (PMS), with petrol selling for as much as ₦1,400 per litre in some locations.

The increase followed a surge in global crude oil prices, with Brent crude climbing above 100 dollars per barrel amid renewed tensions in the Middle East.

The development also coincided with an upward review of ex-depot prices by petroleum marketers and an increase in Dangote Refinery’s ex-depot price to ₦1,215 per litre after it resumed gantry loading of petrol in naira.

A survey by Time Express showed that transport operators in Abuja, Lagos, Kaduna, Ilorin, Adamawa and Maiduguri had either increased fares or were considering adjustments to reflect the higher cost of fuel.

Commuters expressed concern that the increase would further raise the cost of living, while transport operators said they had little choice but to pass part of the additional operating costs to passengers. However, transport fares in Kano remained largely unchanged, with commercial tricycle operators saying they were monitoring the situation before reviewing fares.

Energy law expert, Prof. Dayo Ayoade of the University of Lagos, attributed the development to the realities of Nigeria’s deregulated petroleum market, noting that domestic fuel prices are now influenced by international crude oil prices and exchange rate fluctuations.

He said the Petroleum Industry Act provides for market-based pricing, limiting the government’s ability to intervene directly except in exceptional circumstances. Other analysts urged the Federal Government to strengthen the naira-for-crude arrangement and support local refining to reduce the impact of global oil price volatility.

Meanwhile, global oil prices continued their upward trend as Brent crude rose above 101 dollars per barrel, driven by renewed security concerns in the Red Sea and fears of supply disruptions.

Industry observers warned that unless global crude prices stabilise, Nigerians could face further increases in petrol prices, transportation costs and the prices of goods and services in the coming weeks.