FG: Nigerians Pay 50% Below Global Petrol Average Despite Price Hikes

The Federal Government has defended the current pump price of Premium Motor Spirit (PMS), insisting that Nigerian consumers still pay significantly less than the global average despite recent increases driven by Middle East volatility. Petrol now retails between ₦1,200 and ₦1,255 per litre across the country, but officials argue the cost remains approximately half of what obtains in comparable markets abroad.

Speaking Thursday at the commissioning of the Nigeria Revenue Service (NRS) headquarters in Abuja, NRS Executive Chairman Zacch Adedeji stated that Nigeria’s petrol price currently equates to about $0.88 per litre. He contrasted this with prices in the United States, where fuel costs approximately $1.70 per litre, as well as higher rates in India and South Africa. “The complaints about high fuel costs do not fully capture the global pricing reality,” Adedeji said.

Adedeji credited the relative price stability to reforms introduced by the administration of President Bola Tinubu, particularly the removal of fuel subsidies and the strategic push to support local refining capacity. He noted that without these policy adjustments, the nation could have faced acute shortages, long queues, and even steeper prices. The NRS Chairman further highlighted the Dangote Refinery’s growing role in domestic supply, stating that it is now more efficient to source fuel locally than to rely on shipments from Europe.

He praised the government’s Naira-for-crude initiative as a transformative measure that has repositioned Nigeria from a net importer to a net exporter of petroleum products, citing reports that the Dangote Refinery has already exported multiple cargoes to other African nations.

In a separate interview on national television, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), acknowledged the Dangote Refinery’s positive economic impact but cautioned against over-reliance on a single source. He advocated for a balanced approach that includes temporary fuel importation to foster competition and insulate the market from global price shocks.

“We do not want to recommend total dependence on foreign petroleum products. Importation should not be permanent,” Gillis-Harry stated. “But allowing licensed marketers to import PMS will enhance competition and ultimately drive down prices for consumers.”

The PETROAN president pushed back against a recent World Bank recommendation that Nigeria expand fuel importation as part of broader economic reforms. The World Bank’s April 2026 Nigeria Development Update noted that Nigeria’s local pump price of approximately ₦1,275 per litre exceeded the estimated import parity level of ₦1,122 per litre as of March 2026, attributing the gap to limited competition and trade barriers.

Gillis-Harry dismissed the advice, asserting that Nigeria possesses capable economists to guide domestic policy. “I do not accept everything that the World Bank advises,” he said. He also downplayed concerns about substandard fuel entering the market through imports, noting that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sufficient quality control mechanisms in place.

Gillis-Harry reiterated calls for the revival of state-owned refineries and further investment in private refining capacity. He argued that liberalizing the downstream sector would secure long-term supply stability and protect consumers from volatility. “If you have multiple suppliers, there will be competition, and products will become more affordable,” he said. “Affordability is key for Nigerians.”