Nigerians Reel as Fuel Prices Skyrocket Amid Economic Crisis
Nigerians are grappling with another dramatic petrol price hike after the National Petroleum Company (NNPC) increased prices by 11%, marking the second rise in just two weeks, Reuters has reported. The hike, which sees petrol prices soar as high as 1,019 naira per liter in northeastern regions, comes just as NNPC began sourcing fuel from the newly operational Dangote oil refinery on the outskirts of Lagos. While the 650,000 barrels-per-day facility was expected to end Nigeria’s long-standing reliance on imported fuel, the transition has not provided the immediate relief many hoped for. Instead, Nigerians are left to deal with surging inflation, a cost-of-living crisis, and intensifying transportation costs.
The price of gasoline, a politically sensitive issue in Nigeria, has become a source of nationwide unrest. Many households and businesses heavily rely on fuel to power generators due to unreliable electricity access, and the recent price hikes have exacerbated public anger. Violent protests erupted in August following the removal of fuel subsidies by President Bola Tinubu, a policy aimed at stabilizing the nation’s economy but with devastating short-term impacts on ordinary citizens, especially as inflation has climbed to over 33%. With NNPC purchasing petrol in U.S. dollars and local currency arrangements still in flux, the country’s economic struggles are far from over.
The Dangote refinery, touted as a game-changer for Nigeria’s energy sector, promises long-term benefits but has yet to alleviate immediate pressures. Starting in October, NNPC will supply 385,000 barrels of crude daily to the refinery, to be paid for in naira, potentially stabilizing fuel prices. Until then, however, Nigerians must endure escalating costs while waiting for the refinery’s full impact on the economy and fuel distribution to take shape.
