For decades, Nigerians purchased petrol at government-regulated prices under the fuel subsidy regime. That era ended in May 2023, when the Federal Govt. announced the removal of subsidy, triggering a sharp and sustained rise in pump prices nationwide.
Before subsidy removal
Prior to May 2023, petrol sold for between N165 and N200 per litre across the country. Prices were relatively stable, but the system came with frequent fuel scarcity, long queues and heavy fiscal burden, as the Federal Govt. spent trillions of naira annually to keep pump prices low.
After subsidy removal
With the subsidy withdrawn, petrol prices surged almost immediately. By mid-2023, pump prices jumped to N480–N570 per litre. By the end of that year, the average price had climbed to about N670 per litre.
The upward trend has since continued. By late 2024 and into 2025, petrol prices in many states rose to between N900 and N1,200+ per litre, depending on location and supply conditions.
A major price shift
Overall, petrol prices have increased by more than 200 per cent since subsidy removal. While fuel availability has improved, the higher pump prices have driven up transport fares, food prices and the general cost of living.
With deregulation, petrol pricing is now market-driven, influenced by import costs, exchange rates, logistics and distribution expenses.
As a result, prices vary significantly across states, reflecting differences in transportation costs and the naira’s value against the dollar.