Why Nigeria Must Reconsider Its Response to High Petrol Prices

Petrol now sells for about ₦1,400 to ₦1,500 per litre in many places, worsening transport fares, food prices and the cost of basic services. While Nigerians bear the pressure, several countries have introduced temporary tax cuts, price ceilings or targeted support to reduce the impact of rising energy costs on households. Nigeria produces crude oil and now has more domestic refining capacity, including output from the Dangote refinery. Yet petrol prices remain under market-based conditions under the Petroleum Industry Act. The law may support reform, but it should not prevent the government and National Assembly from considering lawful measures that offer consumers relief during severe economic hardship. Subsidy removal was presented as a difficult reform that would free resources for public services. However, many families still struggle with food, school fees and transport costs, while government savings have reportedly been absorbed by debt servicing and higher expenditure. The Federal Government should examine targeted, transparent and sustainable ways to reduce the burden of petrol prices without returning to the failures of the old subsidy regime.

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