Rising petrol prices have renewed calls for government intervention as commuters, transport operators and small business owners struggle with increasing transportation and operating costs across Nigeria.
More than three years after President Bola Tinubu announced the removal of fuel subsidy, the debate over restoring government support has intensified, with the Federal Government maintaining that petrol prices are determined by market forces.
In Kano, the latest increase in petrol prices has pushed up transport fares and forced small business owners to adjust their charges.
A commercial tricycle operator, Abu Sadiq, said petrol now sells for between N1,440 and N1,470 per litre at different filling stations, while declining passenger patronage has made it increasingly difficult to recover operating expenses.
“We buy fuel at N1,440, at other fuel stations at N1,470, and even after that, you don’t always get passengers,” he said.
Interstate transport fares have also increased by approximately N1,000 on several routes.
Passengers travelling from Kano to Bauchi now pay about N11,000, while the fare from Kano to Mararaba in Abuja is also around N11,000.
The Kaduna to Kano and Saminaka to Bauchi routes cost approximately N7,000 each, while Kaduna to Bauchi costs N15,000.
Other fares include Maiduguri to Bauchi at N12,000, Bauchi to Wukari at N14,000, Bauchi to Jalingo at N17,000 and Kano to Hadejia at N9,000.
Small Businesses Struggle With Rising Fuel Costs
Small business operators are also experiencing the effects of higher petrol prices.
A tomato grinding operator in Mariri, Kano, popularly known as Maman Ramadan, said she had increased her minimum charge to N150 because of rising fuel expenses.
“People will complain that it’s just a small quantity of tomatoes, but it’s fuel we use,” she said.
“Sometimes, I even buy fuel from black market sellers, and at the end of the day, I don’t make the kind of profit I used to.”
However, prices of some essential cooking ingredients, including seasoning cubes, salt and flour, have remained relatively stable in shops around Mariri.
Economist Calls for Protection of Vulnerable Nigerians
An Associate Professor at Ahmadu Bello University, Zaria, M. I. Aminu, has urged the Federal Government to introduce measures to protect low income households from the effects of rising petrol prices.
Aminu explained that higher fuel prices increase transportation costs, which subsequently affect food prices, manufacturing expenses and the distribution of essential goods.
“When fuel becomes more expensive, transport operators face higher operating costs and may increase fares. But the effect does not stop with passengers,” he said.
According to him, Nigeria’s heavy dependence on road transportation means that increases in petrol prices can quickly spread throughout the economy.
Farmers, traders, manufacturers and retailers face higher expenses when transporting goods, with the additional costs eventually passed on to consumers.
“For low-income households, the impact becomes particularly severe when higher fuel and transport costs reduce their ability to afford basic necessities such as food, housing and energy,” he said.
Aminu stressed that the severity of the situation depends largely on whether household incomes are increasing alongside the cost of living.
“In essence, the danger point is not simply a particular fuel price. It is the point at which the increase substantially reduces the household’s real purchasing power and forces families to cut back on essential consumption,” he said.
Cash Transfers, Better Transportation Recommended
The economist recommended targeted cash transfers, stronger social protection programmes and improved public transportation to cushion the effects of rising petrol prices.
He also advocated increased investment in roads, railways and logistics infrastructure to reduce the cost of moving people and goods.
“Government can provide targeted cash transfers and other social protection to vulnerable households, improve mass public transportation, and invest in roads, rail and logistics infrastructure to reduce the cost of moving goods and people,” he said.
Aminu identified exchange rate pressures, energy constraints, low productivity and expensive logistics as additional factors contributing to inflation.
“The objective should be to protect vulnerable households while reducing the structural costs that drive prices upward,” he said.
He maintained that regulating petrol prices alone would not address the broader economic challenges facing Nigerians.
“In a nutshell, fuel-price increases do not affect only motorists; they equally affect the entire economy because transportation is embedded in the production and distribution of almost everything we consume,” he said.
“The appropriate policy response, therefore, is not simply to control the pump price, but to protect vulnerable households while simultaneously reducing the underlying cost of moving people and goods.”
Government, Opposition Differ Over Fuel Subsidy
The renewed debate comes amid disagreements over the Federal Government’s petrol pricing policy ahead of the 2027 general elections.
Minister of State for Petroleum Resources, Heineken Lokpobiri, recently maintained that the government could neither increase nor reduce petrol prices because the downstream petroleum sector had been fully deregulated.
“The Bola Tinubu government doesn’t have any power to reduce or increase the price of petrol. It is completely deregulated in line with global best standards,” he said during an appearance on Channels Television.
Lokpobiri also argued that domestic refining does not automatically guarantee cheaper petrol because crude oil is priced according to international market conditions.
Meanwhile, African Democratic Congress presidential candidate Atiku Abubakar has proposed replacing petrol import subsidies with a production subsidy designed to make locally refined petrol more affordable.
Atiku also cited an SBM Intelligence survey indicating that 67.4 percent of respondents supported restoring fuel subsidy.
President Tinubu, however, has ruled out reinstating the subsidy, maintaining that investment in Compressed Natural Gas and electric public transportation offers an alternative approach to reducing transportation costs.
The competing proposals have kept petrol pricing and its impact on household expenses at the centre of Nigeria’s economic and political debate.
