Nigeria’s Petrol Prices Surge by Nearly 1,000% in Nine Years

Nigeria has witnessed an extraordinary surge in petrol prices, with an almost 1,000% increase over the past nine years. In 2015, the price was ₦87 per liter, but by October 2024, it has skyrocketed to ₦1,200 per liter, marking a 1,279.31% increase.

This massive rise in fuel prices is the result of several key factors and has had a profound impact on the economy and everyday life for Nigerians.

Key Milestones in Petrol Price Increases:
• 2015: Petrol was priced at ₦87 per liter.
 • 2016: A 66.67% increase brought the price to ₦145 per liter under President Muhammadu Buhari’s administration.
• 2023: In June, the price surged by 129.23% due to economic factors, reflecting deeper price adjustments.
• 2024: By January, petrol prices rose to an average of ₦668.3 per liter, and by October, the price had climbed to ₦1,200 per liter, a 411% increase since President Bola Tinubu took office in May 2023.

Contributing Factors to the Surge
1. Removal of Fuel Subsidies: The Nigerian government’s decision to end fuel subsidies had a direct impact on the petrol price increase. This policy shift, implemented in 2023, was part of broader economic reforms.
2. Currency Devaluation: The depreciation of the naira has made the importation of fuel more expensive, further escalating prices.
3. Global Oil Market Trends: The fluctuation in global oil prices continues to play a significant role in the rising cost of petrol in Nigeria.
4. High Inflation: Nigeria’s inflation rate reached 33.2% in 2024, contributing to the overall rise in the cost of living, including fuel prices.

Economic Impact on Nigerians:
• Transportation Costs: As petrol prices rise, both public and private transport fares have escalated, burdening commuters and reducing mobility.
 • Higher Cost of Living: The sharp increase in fuel prices has led to a surge in the prices of goods and services, putting additional pressure on households.
. Business Strain: Businesses have been forced to adjust to higher operational costs, with many passing the burden onto consumers, leading to lower purchasing power.

Government Responses:

In an effort to mitigate the impact of rising fuel costs, the Nigerian government has explored initiatives such as encouraging the use of Compressed Natural Gas (CNG) for vehicles, offering a more affordable alternative to petrol. However, these measures have yet to provide significant relief for most Nigerians facing the brunt of the fuel price hikes.

The near 1,000% increase in petrol prices over the last nine years highlights the severe economic challenges facing Nigeria, underscoring the need for more effective energy and economic policies to stabilize the country’s economy.