Commuters across several parts of Nigeria are facing higher transportation costs following another increase in petrol prices, with the product now selling for as much as N1,400 per litre in some locations.

The latest fuel price adjustment has triggered an immediate rise in transport fares as commercial transport operators pass the higher operating costs on to passengers. The development comes amid growing concerns over the rising cost of living and inflation, which continue to put pressure on households and businesses nationwide.

Industry data obtained from petroleum marketers showed that ex-depot prices have increased across major fuel distribution centres in Lagos, Warri, and Calabar. The adjustments followed a sharp rise in global crude oil prices, with Brent crude climbing above $100 per barrel due to renewed geopolitical tensions in the Middle East.

The increase in international crude oil prices has continued to influence domestic fuel pricing, despite Nigeria’s growing local refining capacity. Higher crude prices generally raise the cost of producing refined petroleum products, leading to increased prices throughout the supply chain.

According to the latest loading data, A.A. Rano raised its ex-depot petrol price in Lagos from N1,275 to N1,279 per litre. Several other marketers, including African Terminal, Ascon, Gulf Treasure, Integrated, and T.Time, also adjusted their ex-depot prices to N1,275 per litre.

Meanwhile, Aiteo, Heyden, and Nipco retained their existing ex-depot price of N1,275 per litre, maintaining stability despite the broader upward trend in the market.

In contrast, Emadeb slightly reduced its ex-depot price from N1,278 to N1,274 per litre, making it one of the few marketers to lower prices during the latest round of adjustments.

The changes in ex-depot pricing are expected to influence pump prices across filling stations, as retailers factor in higher acquisition costs, transportation expenses, and operating costs before selling to consumers.

A major factor behind the latest increase is the pricing adjustment announced by Dangote Refinery, currently the country’s largest supplier of Premium Motor Spirit (PMS).

The refinery resumed gantry loading of petrol in naira on Thursday after suspending operations for about one week. During the suspension, the refinery had introduced a dollar-denominated pricing system for refined petroleum products, raising concerns among marketers and industry stakeholders.

With the resumption of naira-based sales, Dangote Refinery also increased its ex-depot petrol price to N1,215 per litre. The new rate represents an increase of N140 per litre, or 13.02 percent, compared to the previous ex-depot price of N1,075 per litre.

The refinery had halted both gantry and coastal loading activities on July 15 following the introduction of the dollar-based pricing template. The temporary suspension affected product distribution and contributed to uncertainty within the downstream petroleum sector before operations resumed.

Industry observers believe that the latest ex-depot price adjustments by Dangote Refinery and other fuel marketers are likely to have a ripple effect across the country, with retail petrol prices expected to remain elevated unless global crude oil prices decline.

The increase in fuel prices has already affected transportation costs in many cities, where commercial bus operators, taxi drivers, and ride-hailing services have begun adjusting fares to reflect higher fuel expenses.

For many Nigerians, the latest increase adds to existing economic pressures caused by rising food prices, electricity costs, and general inflation. Higher transport fares are also expected to increase the cost of moving goods across the country, potentially contributing to further increases in the prices of essential commodities.

Economic analysts say fluctuations in international oil prices, exchange rate movements, and domestic supply conditions will continue to influence petrol pricing in Nigeria. They note that while local refining capacity has improved with the commencement of operations at Dangote Refinery, global market conditions still play a significant role in determining fuel costs.

As fuel marketers continue to adjust prices in response to changing market realities, commuters and businesses are expected to bear the immediate impact through higher transportation and logistics expenses. Stakeholders are therefore watching developments in the international oil market closely, hoping for improved stability that could ease pressure on domestic fuel prices.