Nigeria's Petrol Prices Remain Low Amid Global Surge

Nigeria's petrol prices remain comparatively low, averaging ₦191.39 per liter, significantly below the global average of ₦787.08 per liter. This positions Nigeria favorably in the global fuel market, especially as international prices rise due to geopolitical tensions in the Middle East.

Analysts attribute this price stability to the Dangote Refinery, which helps cushion domestic consumers from global cost pressures and ensures a consistent supply of petrol. Despite a 35-40% increase in petrol prices since the onset of the global crisis, Nigeria's prices remain lower than those in several major economies, including the United States (₦455.39), India (₦482.47), and South Africa (₦609.73).

The country operates a fully deregulated downstream sector following the removal of fuel subsidies in 2023, meaning domestic petrol prices are largely influenced by global crude oil trends. However, without expanding local refining capacity, Nigeria remains vulnerable to global supply shocks that could lead to higher fuel prices.