Petrol (Fuel) is one of the most essential commodities in Nigeria, as it powers various aspects of the economy and daily life. However, the price of petrol has been fluctuating over the years, due to various factors such as global oil prices, exchange rates, subsidy policies, and supply and demand.....Read The Full Story Here ▶
In this article, we will look at the current price of petrol in Nigeria, the factors that affect it, and some frequently asked questions about it.
According to the Nigerian National Petroleum Company Limited (NNPCL), the official pump price of petrol (PMS) in Nigeria is ₦557 per litre. This was after the removal of subsidy on the commodity by the government, which led to a significant increase in the price from N195 per litre.
However, due to logistics and other factors that vary by location, the actual price of petrol may differ across the country.
According to a Survey by Okay, a website that tracks the prices of various goods and services in Nigeria, the commodity presently goes for prices ranging from N600 to N700 per litre across the country. The over-the-country average price of petrol is presently N630 per litre.
The table below shows the prices of petrol in all 36 states and FCT in Nigeria as of May 16, 2024.
Certainly! Here’s the information in a table format:
| State | Petrol Pump Price (₦) |
|---|---|
| Lagos | ₦488 |
| Ogun | ₦500 |
| Oyo | ₦500 |
| Osun | ₦500 |
| Ondo | ₦500 |
| Ekiti | ₦500 |
| Kwara | ₦515 |
| Abia | ₦515 |
| Imo | ₦515 |
| Akwa Ibom | ₦515 |
| Bayelsa | ₦515 |
| Rivers | ₦511 |
| Cross River | ₦511 |
| Edo | ₦511 |
| Delta | ₦511 |
| Ebonyi | ₦520 |
| Anambra | ₦520 |
| Enugu | ₦520 |
| Abuja | ₦537 |
| Plateau | ₦537 |
| Nasarawa | ₦537 |
| Kogi | ₦537 |
| Benue | ₦537 |
| Niger | ₦537 |
| Sokoto | ₦540 |
| Katsina | ₦540 |
| Kaduna | ₦540 |
| Kano | ₦540 |
| Jigawa | ₦540 |
| Zamfara | ₦540 |
| Kebbi | ₦545 |
| Adamawa | ₦550 |
| Bauchi | ₦550 |
| Taraba | ₦550 |
| Gombe | ₦550 |
| Borno | ₦557 |
| Yobe | ₦557 |
Please take note, that these prices are subject to changes in different stations across the country.
Factors Affecting the Price of Petrol in Nigeria
The price of petrol in Nigeria is influenced by a number of factors, both internal and external. Some of the major factors are:
- Global oil prices: Nigeria is a major exporter of crude oil, but also imports refined petroleum products due to the lack of functional refineries in the country. Therefore, the price of petrol in Nigeria is largely dependent on the international market price of crude oil, which is determined by the forces of supply and demand, as well as geopolitical events. When the global oil prices rise, the cost of importing petrol also increases, which affects the domestic price of petrol.
- Exchange rate: Another factor that affects the price of petrol in Nigeria is the exchange rate of the naira to the US dollar, which is the currency used for international oil transactions. When the naira depreciates against the dollar, the cost of importing petrol also rises, which affects the domestic price of petrol.
- Subsidy policy: The government of Nigeria has been subsidizing the price of petrol for many years, in order to make it affordable for the masses and cushion the effects of inflation and poverty. However, the subsidy policy has also been criticized for being unsustainable, inefficient, and prone to corruption. In 2023, the government announced the removal of subsidy on petrol, which led to a sharp increase in the price of petrol from N195 to N617 per litre. The government claimed that the subsidy removal would save the country billions of naira, which would be invested in other sectors of the economy, such as infrastructure, health, and education.
- Supply and demand: The supply and demand of petrol in Nigeria also affect its price. When the supply of petrol is low, due to factors such as pipeline vandalism, refinery breakdown, or import delays, the price of petrol tends to rise. When the demand for petrol is high, due to factors such as population growth, urbanization, or economic activities, the price of petrol also tends to rise.