Prices spiral as Tinubu government raises fuel prices again

The Nigerian government has again raised petrol prices as Nigerians continue to face unprecedented hardship after the Tinubu government removed fuel and electricity subsidies and devalued the naira.

The state-owned oil company, NNPC Ltd, on Wednesday increased petrol prices by over 15%, marking the second hike in less than a month.

At NNPC fuel stations in Lagos, petrol now costs N998 per litre, up from N858, while in Abuja the price has surged to N1,030 per litre from N897. Private stations sell the products at higher rates.

Most households and small businesses across the country rely heavily on fuel-powered generators to cope with unreliable national electricity grid. With electricity tariffs tripling in April under the government’s punishing new Band A tariff structure, the cost of living has spiralled further, leaving many Nigerians unable to afford basic needs.

Soaring Costs

Transportation and food costs have soared. A 50kg bag of rice, a staple for most Nigerian families, now costs a staggering N110,000—almost triple the price from a year ago, when it sold for N40,000.

The Tinubu administration had claimed that the removal of subsidies would ease the government’s financial burden and allow market forces to stabilize prices in the long run.

However, the reality on the ground has been devastating for millions of Nigerians, who are left bearing the brunt of these policies without any meaningful relief measures. Despite soaring costs, the government has yet to roll out tangible support programs to cushion the effects on the populace, deepening the sense of discontent.

The removal of the fuel subsidy, in particular, has been a source of widespread anger. When President Tinubu scrapped the costly but popular subsidy shortly after taking office, inflation soared, pushing more Nigerians into poverty.

Although the government briefly reintroduced the subsidy in a partial manner, the latest fuel price hike signals that full market pricing has returned—leaving many wondering how much worse things will get.

Amid these challenges, the NNPC, the country’s sole importer of refined products, has been under severe financial strain, admitting last month that it could no longer afford to import fuel after weeks of scarcity.

While the Dangote Refinery recently began producing petrol locally, selling crude oil to the refinery in naira, Nigerians have yet to see any tangible benefits from this development, as prices continue to climb.