PMS Prices Jump 643% Since Subsidy Removal
The price of Premium Motor Spirit (petrol) in Nigeria has surged from ₦175 in May 2023 to ₦1,300 in May 2026, representing a 643% increase in three years.
The sharp rise followed President Bola Tinubu’s removal of fuel subsidies immediately after taking office in May 2023, which pushed pump prices above ₦500 per litre.
The subsequent naira devaluation further compounded the situation, making imported petrol unaffordable for many Nigerians.
By mid-2023, the Nigerian National Petroleum Company Limited (NNPC) introduced what the IMF described as an “implicit subsidy,” selling petrol below landing cost.
“We have been importing PMS at a specific cost price, and the government tells us to sell it at half price. The difference is a shortfall,” former NNPC CFO Umar Ajiya admitted.
Fuel prices later climbed to ₦1,080 per litre in 2024, coinciding with the entry of the Dangote Refinery, which triggered a price war, briefly lowering prices to ₦800–₦900.
However, the US–Iran conflict in February 2026 disrupted global oil supply through the Strait of Hormuz, pushing petrol prices back up to ₦1,300–₦1,400 at filling stations.
The surge has worsened inflation, raised transportation costs, and driven up food prices. The Federal Government launched the Presidential Initiative on Compressed Natural Gas (CNG) as an alternative, but adoption remains limited.
Energy economist Prof. Adeola Adenikinju warned, “This is the time Nigeria should send cash to vulnerable households. Rising petrol costs are a two-edged sword—higher revenues for government but worsening hardship for citizens.”
Petroleum retailers also urged government intervention. PETROAN President Billy Gillis-Harry cautioned that prices could exceed ₦1,500 per litre if Middle East tensions persist, while economist Bismarck Rewane suggested crude be sold to the Dangote Refinery at controlled rates to stabilise pump prices.
The Finance Minister, however, ruled out subsidies or price controls, insisting on a market-driven approach.
SOURCE: The PUNCH