Motorists and commuters across Lagos are facing rising transportation costs following another increase in the pump price of petrol, which now sells for between N1,250 and N1,350 per litre at filling stations.
The latest increase follows another upward review of petrol prices by the Dangote Petroleum Refinery, which raised the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,175 per litre from N995 earlier in the week.
The adjustment represents an increase of N180, about 18.1 per cent within three days, marking the refinery’s third price review within the week and prompting swift adjustments across the downstream market.
Industry sources attribute the rise partly to heightened geopolitical tensions in the Middle East, particularly the escalating standoff between Israel and Iran, as well as attacks linked to Yemen’s Houthi movement in the Red Sea corridor.
The instability has forced many oil tankers to reroute from traditional shipping lanes, pushing global freight costs up by roughly 40 per cent, according to market data from the Baltic Exchange.
At the same time, international oil prices have risen, with Brent crude approaching 99 dollars per barrel, while the Nigerian currency trades at about N1,650 to the dollar, factors analysts say are contributing to higher domestic fuel prices.
However, with the emergence of the Dangote refinery, Nigeria continues to rely significantly on imported refined petroleum products.
A spokesperson for the refinery said the price adjustment reflects rising feedstock and logistics costs associated with developments in the global energy market.
The retail prices have increased across several outlets in Lagos, with petrol selling between N1,200 and N1,350 per litre depending on location.
Major marketers have also adjusted their pump prices. MRS Oil Nigeria Plc and Matrix Energy Group sell petrol at about N1,250 per litre, while outlets of Ardova Plc (formerly AP) retail the product at around N1,300 per litre.
Some independent stations charge slightly higher prices.
A NorthWest outlet in the Gbagada area dispensed petrol at about N1,250 per litre, while several other stations across the metropolis sold the product close to the N1,200 mark.
At a Mobil Station along the LASU–Isheri Road corridor, petrol was sold at N1,250 per litre, while Petrocam Station nearby dispensed fuel at the same price.
Similarly, MRS stations in parts of Alimosho sold petrol at about N1,250 per litre, while Mobil outlets in Alaguntan and Iyana Ipaja recorded prices of N1,250 and N1,350 per litre respectively.
Other stations, including Heyden outlets in Iyana Ipaja and along the Oshodi–Abeokuta Expressway, also sold petrol at about N1,250 per litre, reflecting a broad market trend.
Meanwhile, market insiders have said pricing differences were increasingly influenced by variations in product sourcing, particularly between coastal marine lifting arrangements and gantry loading operations.
The increase in fuel prices has already led to higher transportation fares across Lagos, with commuters reporting increases of more than 30 per cent on several routes.
Commercial driver, Mr Sodiq Olarenwaju, said the rising cost of petrol had made daily operations more demanding.
“We are the ones passengers blame for increasing fares, but they don’t realise how much we now spend on petrol.
“If we buy fuel at over N1,000 per litre, we have no option but to adjust fares,” he said.
Another motorist, Mrs Funke Oladipo, described the experience of searching for fuel as stressful.
“I have been driving around since morning with my jerry can looking for petrol. Some stations that opened earlier have already shut their gates,” she said.
A private car owner, Dr Adewale Suleiman, said fuel price increases often had wider economic implications.
“When fuel goes up, transport fares rise and the prices of goods follow immediately,” he said.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said geopolitical tensions in the Middle East often lead to volatility in global oil markets.
According to him, disruptions in the Strait of Hormuz, through which roughly 20 per cent of global crude oil shipments pass daily, can quickly push up oil prices, shipping costs and insurance premiums worldwide.
He noted that higher fuel prices could affect multiple sectors of the economy, particularly industries that rely heavily on energy and transportation.
“For manufacturers, the consequences can be significant, as many factories rely on diesel-powered generators due to electricity supply challenges,” Yusuf said.
The CPPE boss explained that rising fuel prices might increase costs of logistics; transporting raw materials and finished goods, potentially adding to inflationary pressures.
“As manufacturers absorb higher energy and logistics costs, firms may adjust pricing structures or production levels,” Yusuf said.
He also noted that Nigeria might not fully benefit from higher oil prices because crude production remains below capacity, fluctuating between about 1.4 million and 1.6 million barrels per day.
The organisation recommended measures such as strengthening crude production, building fiscal buffers from higher oil revenues and expanding domestic refining capacity.
It also emphasised the importance of sustained foreign exchange reforms, targeted support for vulnerable households and continued economic diversification.
“The evolving situation in the global energy market presents both opportunities and challenges for Nigeria,” Yusuf said.
