Fuel Price Hike: Nigeria's Bold Energy Shift

Nigeria's state-owned oil company, NNPC Ltd, raised petrol prices by over 15%, marking its exit from a costly subsidy program. This shift to full market pricing ends three decades of subsidized fuel, sparking criticism amid an existing cost-of-living crisis worsened by inflation and power supply issues.

Nigeria's state-owned oil company, NNPC Ltd, has raised petrol prices by more than 15%, marking a significant policy shift away from subsidized fuel. This decision marks the second price hike in less than a month.

The latest increase at NNPC fuel stations sees gasoline prices soar to 998 naira per litre in Lagos and 1,030 naira per litre in Abuja. Customers lined up outside stations, confronting the abrupt change in cost. This pricing shift allows NNPC to recover its costs fully, as it procures gasoline from the Dangote Oil Refinery at market rates.

Critics fear the new prices will exacerbate Nigeria's already challenging cost-of-living crisis. The change follows President Bola Tinubu's decision to abolish a popular yet unsustainable subsidy to reduce government spending. Meanwhile, the Dangote Refinery will now supply the country's gasoline needs, with expectations of reshaping the market landscape.

(With inputs from agencies.)