By Olalekan Adetayo
The book of lamentation has been opened again in Nigeria. Commercial drivers are reading from it loudly. They are joined by private vehicle owners, some of whom are already considering abandoning their vehicles for now. Traders are not spared. It is the season of lamentation as the price of petrol has suddenly developed wings and is flying upward in a concerning manner.
Within one week, petrol price has climbed above the psychological threshold of N1,000 per litre in many locations, with some stations selling even higher depending on location. It can be N1,300, N1,400 or more, depending on where you are. As of Saturday, when I was buying for N1,100, I also lamented to the attendant because the last time I bought before then, it was N835.
In just days, ex-depot prices have risen sharply, forcing retail outlets to adjust pump prices upward across the country. The consequence is immediate and predictable: transport fares rise overnight, the cost of goods follows, and the average Nigerian is left to absorb yet another shock in an already fragile economy. In Nigeria, fuel price is not just an economic statistic; it is the pulse of daily life.
Experts have tried to explain the drivers of the current hike to us, laymen. By the way, in situations like this, everybody becomes an expert. The emergency experts will narrow everything down to politics. They are not in short supply in buses and neighbourhoods. Any dissenting voice will be viewed from the angle of politics.
The real experts, however, have talked about global oil market disruptions, particularly geopolitical tensions in the Middle East affecting supply routes, as part of the cause. They mentioned Nigeria’s continued reliance on imported refined products despite being a major crude producer. They talked about market-based pricing following the removal of fuel subsidies, exposing local consumers to global price volatility and, of course, structural issues in the domestic petroleum supply chain. The reality is that many are still finding it difficult to come to terms with Nigeria’s paradox — an oil-producing nation where citizens pay heavily for fuel.
Whenever one of my senior friends is dragged into a topic or discussion he is not interested in, his question has always been, ‘How does that affect the cost of fish in the market?’ That same question cannot be asked about the rise in fuel prices. It not only affects the cost of fish and other items in the market, but it also impacts our lives seriously.
Transport fares rise almost instantly when fuel prices increase. Food prices climb because logistics costs increase across the supply chain. Many households now spend more income on transport and generator fuel due to unreliable electricity. Wage growth has not matched the rising cost of living. It is glaring that the fuel price in Nigeria functions as a multiplier of hardship.
The impact is not only on individuals. Business entities are also suffering. Small and medium enterprises are particularly vulnerable because higher fuel costs raise operational expenses for transport, logistics, and generator power. Profit margins shrink as businesses struggle to pass costs to consumers already under pressure. Some firms respond by laying off staff, cutting production or increasing prices. Energy costs are indeed one of the biggest constraints on Nigeria’s business environment.
The macroeconomic ripple effects also manifest in the form of higher inflation through transport and food prices, reduced consumer purchasing power, increased cost of doing business, weakening competitiveness, and a greater risk of economic slowdown if consumer demand collapses. Energy pricing is central to Nigeria’s economic stability.
Truly, the government cannot stand aloof while things continue to fall apart. There must be deliberate key policies to tackle this problem. There is a need to ensure that local refineries operate efficiently to reduce dependence on imports. Market competition needs to be strengthened to prevent monopolistic behaviour in the supply chain. The government must invest more in buses, rail and urban transport systems to reduce dependence on petrol-powered commuting. The power sector should also be reformed. Reliable electricity would drastically reduce reliance on petrol generators. If Nigerians must pay market prices for fuel, the government must deliver the infrastructure that reduces the burden.
Fuel price increases may be inevitable in a deregulated market, but hardship should not be. A government that asks citizens to endure painful reforms must demonstrate that the sacrifice will translate into better infrastructure, stronger economic growth, and improved living standards. Otherwise, the question Nigerians will continue to ask is simple: ‘Who truly benefits from the price of fuel?’
No serious economy can pretend that energy pricing does not matter. In Nigeria, it determines the cost of moving goods, running businesses, powering homes, and ultimately feeding families. If higher fuel prices are now the unavoidable consequence of a deregulated market, then the government must urgently deliver the compensating reforms that make the pain worthwhile — functional refineries, reliable electricity, efficient public transport and a business environment that allows enterprises to thrive. Nigerians are not strangers to sacrifice; what they resist is sacrifice without results. The real test of economic reform, therefore, is not how often fuel prices rise, but whether the country finally begins to move forward with them.
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