Nigerians have continued to express their dissatisfaction regarding the rising prices of Premium Motor Spirit (PMS), also known as fuel, as global crude oil prices pushed above $105 per barrel.
Following the escalation of military tensions in the Middle East, specifically involving the U.S., Israel, and Iran, international markets have reacted with volatility, sending energy costs to their highest levels since 2022.
For the average Nigerian, the development immediately hiked the cost of living. Since the market is largely deregulated, domestic petrol prices have responded sharply to the international benchmark.
Prices have risen to between ₦1,200 and ₦1,350 per litre in major cities such as Lagos and Abuja. There have been indications that fuel prices might increase further after global oil prices rose above $105 on Monday.
Brent crude futures increased by $2.01, or 1.95%, to $105.15 per barrel by 2338 GMT, after settling $2.68 higher in the previous session on Friday.
U.S. West Texas Intermediate (WTI) crude climbed $1.61, or 1.63%, to $100.32 per barrel, following a nearly $3 gain in the prior trading session.
Pan-Atlantic Kompass reports that global oil prices surged above $105 per barrel following U.S.–Israeli attacks on Iran, which prompted Tehran to halt shipping through the Strait of Hormuz. The Strait of Hormuz is a key chokepoint for about one-fifth of global oil supply.
Meanwhile, Nigerians from all walks of life have begun to call on the government to make available relief measures that would cushion the rising prices of fuel.
The Independent Petroleum Marketers Association of Nigeria asked the Federal Government to cut off some taxes and charges on petroleum products to reduce the pump prices of fuel.
IPMAN spokesman, Chinedu Ukadike, said this became necessary to stop the price of petrol from further skyrocketing. According to him, there are charges from the Nigerian Maritime Administration and Safety Agency, the Nigerian Ports Authority, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and others.
The Managing Director of the Dangote refinery said last week that the company paid over 40 charges and taxes to different government agencies.
“The government should cut down some of these taxes, especially the NIMASA taxes and the rest of them. It will help in bringing down the price of petroleum products. Some of these depot charges, NPA charges, NMDPRA charges, and others – some of these things are supposed to go away now that we are facing a very serious challenge for us to get better. But if they continue to stay, it means petroleum products will continue to go high,” he said.
Similarly, members of the Organised Private Sector urged the Federal Government to channel the additional revenue from rising crude oil prices into strategic investments such as Compressed Natural Gas transportation, support for domestic refineries, and settling outstanding debts to gas suppliers to boost electricity generation, rather than returning to any form of fuel subsidy.
The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said Nigeria must use the opportunity to deepen investments in domestic refining and alternative fuel options.
He urged the government to channel part of the oil windfall into supporting local refining capacity, including modular refineries. “Can we do a naira exchange so that a portion of this crude goes to refineries that are refining locally? People are saying that Dangote is not the only refinery in Nigeria. We have modular refineries that we can encourage to scale up. The government should not go back to fuel subsidies,” he said.
“Why can’t we have duty-free incentives in converting many of our vehicles, even private vehicles, from petrol to CNG? If we can take most of our public transport out of this petroleum situation and move them to CNG, you will see that the effect on petrol demand will come down,” Kupoluyi stated.
In a statement on Sunday, the Nigeria Labour Congress called for urgent government intervention, warning that workers are already struggling to cope with soaring fuel costs.
In the statement signed by its President, Joe Ajaero, the union said petrol prices have climbed to between N1,170 and N1,300 per litre, worsening hardship for Nigerian workers. “The Nigeria Labour Congress voices the collective anguish of millions of Nigerian workers bearing the brutal cost of a global crisis they did not create,” the statement said.
The labour union argued that the crisis has exposed weaknesses in Nigeria’s downstream petroleum sector and questioned claims that local refining would shield the country from global price volatility. It noted that the Dangote refinery had adjusted prices in line with global oil market movements, passing the higher cost on to consumers.
The statement reads in part: “NLC voices the collective anguish of millions of Nigerian workers who are bearing the brutal cost of a global capitalist crisis they did not create. The military escalation involving the United States, Israel, and Iran has sent shockwaves through global oil markets. As a result, petrol prices in Nigeria have skyrocketed to between N1,170 and N1,300 per litre.
“This is a direct assault on the Nigerian people. While imperialist rivalries play out abroad with bombs and military escalation, Nigeria’s working class is being bombarded with poverty and hunger because we have failed to ensure that our public refineries are operational.
“This crisis has brutally exposed the fragility of Nigeria’s downstream petroleum sector. It has stripped away the illusion that local refining alone would shield the country from global shocks. The Dangote Refinery has adjusted its prices in line with global volatility, passing the burden directly to the masses. This undermines the narrative that domestic production alone guarantees price stability.
“As long as Nigeria remains dependent on a market-driven pricing structure tied to global fluctuations, and refuses to revive its public refining capacity, the country will remain hostage to international conflicts and market speculation.
“The NLC had earlier warned about the danger of sabotaging public refineries in ways that could create monopolistic control in the downstream sector. This moment must serve as a wake-up call to the managers of Nigeria’s economy.
“No nation achieves economic independence by exporting jobs and importing prices. The government must immediately halt the decay of the public sector and ensure the full rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries. This is not a favour but the right of the Nigerian people, enabling the country to cushion itself against an increasingly hostile global economic environment.
“The soaring cost of petrol, PMS, and diesel (AGO) has made transportation a heavy burden on workers. Food inflation continues to rise, while meagre wages are being swallowed by the rising cost of living. When workers cannot afford transportation to their workplaces, the economy stalls. When families cannot afford three meals a day, society sits on a keg of gunpowder.
“The government cannot foreclose any action that would offer relief to the people. It is the duty of the state to act decisively to prevent the suffering of its citizens, rather than helplessly attributing the crisis solely to the Middle East conflict.
“Recent projections by the Nigeria Economic Summit Group (NESG) indicate that Nigeria may gain an estimated N30 trillion oil windfall from the ongoing Middle East crisis.
“The Nigeria Labour Congress therefore demands the following urgent actions: immediate wage award and cost-of-living allowance (COLA) for all workers to cushion the rising cost of living; expansion and overhaul of the Cash Transfer programme to ensure transparency and guarantee that assistance reaches the most vulnerable citizens, with transfers adjusted to reflect inflation; immediate tax relief for workers, including suspending regressive taxes on low-income earners and taxing the informal sector. Taxing minimum-wage earners amounts to extortion. The NLC also demands a clear timeline for the full operationalization of all public refineries. The Nigerian state must be held accountable for the billions of naira spent on turnaround maintenance.”
