FG: Nigerians Pay 50% Below Global Petrol Average Despite Price Hikes
The Federal Government has defended the current pump price of Premium Motor Spirit, insisting that Nigerian consumers still pay roughly half the global average despite prices now ranging between ₦1,200 and ₦1,255 per litre. The statement comes amid public frustration over rising costs linked to instability in the Middle East and global oil market disruptions.
Speaking Wednesday at the commissioning of the Nigeria Revenue Service headquarters in Abuja, NRS Executive Chairman Zacch Adedeji argued that public complaints fail to account for comparative global pricing. He noted that petrol retails for approximately $0.88 per litre in Nigeria, compared to roughly $1.70 in the United States, with India and South Africa also recording significantly higher rates.
Adedeji attributed Nigeria's relative affordability to reforms introduced by President Bola Tinubu's administration, including the removal of fuel subsidies and a concerted push to expand local refining capacity. "Without these reforms, the country would be grappling with severe shortages and even steeper prices," he said.
The NRS chairman highlighted the Dangote Refinery's expanding role in domestic supply, stating that sourcing fuel locally has proven more efficient than relying on European shipments. He also praised the Federal Government's Naira-for-crude initiative, describing it as a transformative policy repositioning Nigeria from a net importer to a net exporter of petroleum products. Reports indicate the Dangote Refinery has already dispatched multiple cargoes to other African nations.
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. Speaking on national television, he advocated for a diversified supply chain to insulate the market from global shocks.
"We do not want to recommend total dependence on foreign products, but importation should not be permanent," Gillis-Harry said. He argued that allowing licensed marketers to import PMS would foster healthy competition and drive down consumer prices over time.
Gillis-Harry pushed back against recent World Bank advice urging Nigeria to expand fuel importation as part of broader economic reforms. The World Bank's April 2026 Nigeria Development Update estimated local petrol prices at ₦1,275 per litre against an import parity of ₦1,122, citing trade barriers as a key inflationary driver.
"I do not accept everything the World Bank advises," Gillis-Harry responded. "We have capable economists who can guide this country." He dismissed concerns that increased importation would flood the market with substandard fuel, noting that the Nigerian Midstream and Downstream Petroleum Regulatory Authority maintains rigorous quality controls.
PETROAN supports local refining and ongoing purchases from the Dangote Refinery, Gillis-Harry affirmed, while reiterating calls to revive state-owned refineries and encourage new private investments. "Multiple suppliers mean competition, and competition means affordability. That is what Nigerians need," he said. He concluded that full liberalisation of the downstream sector remains essential for long-term supply security and price stability.