Nigerians Paying 50% Below Global Petrol Price Average

The Federal Government has defended the current pump price of petrol, stating that Nigerians still pay significantly less than the global average despite recent increases driven by international market pressures. Petrol prices across the country have risen to between N1,200 and N1,255 per litre amid ongoing tensions in the Middle…...

Petrol prices across the country have risen to between N1,200 and N1,255 per litre amid ongoing tensions in the Middle East, which have disrupted global oil supply chains and pushed up costs.

Speaking on Tuesday, the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, said petrol prices in Nigeria remain about 50 per cent lower than those in many parts of the world.

He made the remarks during the commissioning of the agency’s headquarters in Abuja, noting that public complaints about fuel costs often overlook global pricing realities.

According to Adedeji, petrol currently sells for about $0.88 per litre in Nigeria, compared to roughly $1.70 per litre in the United States, with prices in countries such as India and South Africa also higher.

He attributed the relatively lower cost to reforms introduced under President Bola Ahmed Tinubu, particularly efforts to boost local refining capacity.

The Tinubu administration removed petrol subsidies shortly after taking office, a move that saw prices surge from under N200 per litre to over N1,000. Prices have since climbed further, largely due to external market forces.

Despite the increases, Adedeji maintained that the reforms have ensured stability in fuel supply, preventing severe shortages and long queues that could have worsened the situation.

He also highlighted the growing impact of the Dangote Refinery, noting that increased domestic production has reduced reliance on fuel imports and improved supply efficiency.

Adedeji further praised the Federal Government’s naira-for-crude initiative, describing it as a transformative policy that has helped reposition Nigeria within the global energy market.

Meanwhile, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, acknowledged the positive role of local refining but stressed the need for multiple supply sources to ensure market stability.

He argued that encouraging competition in the downstream sector, including allowing licensed marketers to import petrol, would help cushion the impact of global price shocks and reduce costs for consumers.

Gillis-Harry also expressed reservations about recommendations by the World Bank, which advised Nigeria to expand fuel importation as part of broader economic reforms.

In its April 2026 Nigeria Development Update, the World Bank noted that petrol prices in Nigeria had exceeded import parity levels, estimating local prices at about N1,275 per litre compared to an import parity of around N1,122 per litre as of March 2026.

However, the PETROAN president maintained that Nigeria should rely on domestic expertise for policy direction, while emphasising that regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority have safeguards to prevent the importation of substandard fuel.

He called for a balanced approach that supports local refining while allowing limited importation, alongside the revival of state-owned refineries and investment in additional private facilities.

According to him, increased competition among suppliers would ultimately drive down prices, improve supply security, and ensure long-term sustainability in the sector.