At this point, every Nigerian knows the sound of bad news: “PMS price has increased.” You do not even need to check Twitter; you just wake up and your bolt fare has tripled again.
It is wild how one number at the fuel station can decide your mood, your spending, and sometimes, your entire week.
So what exactly is behind these constant fuel price jumps, and how can you plan your life when next month’s price tag keeps changing?
TL;DR
- Petrol prices keep rising because of global oil prices, exchange rates, and subsidy removal.
- Nigeria imports most of its fuel, so when the naira sneezes, everyone catches cold.
- The trick is to plan instead of panic when prices go up.
1. Let’s Start With the Facts
Nigeria produces crude oil but does not refine most of it. We export crude, then import finished petrol. That means we pay global market prices plus the cost of shipping, refining, and foreign exchange.
So when the dollar rate jumps from ₦900 to ₦1,300, your fuel price follows closely behind. Add government policy changes and market deregulation, and you have the perfect recipe for chaos.
2. The “Subsidy Removal” Plot Twist
For years, Nigeria used fuel subsidies to keep prices “manageable.” The government paid part of the cost so that consumers could buy petrol at a lower rate.
Then in 2023, the subsidy was removed. That single decision exposed the real cost of petrol. Overnight, the price moved from ₦185 to ₦500, then to ₦700 and above.
Subsidy removal was meant to save national funds for development. In reality, it left many people stranded at the pump and struggling to adjust.
3. Why Prices Still Fluctuate Even Without Subsidy
Many Nigerians thought prices would stabilize once the subsidy ended. That did not happen. Prices are now determined by market forces, mainly the naira-dollar exchange rate and global crude oil prices.
If oil prices rise globally or the naira weakens, fuel costs increase immediately. That is why you often hear, “Petrol may sell for ₦1,000 per litre soon.” It is not drama. It is arithmetic.
4. The Domino Effect on Everything Else
Fuel prices do not rise alone. They pull everything else up with them: food, transport, rent, even your favorite roadside shawarma.
In Nigeria, logistics drives most costs. When it becomes more expensive to move goods, every trader adds transport expenses to their prices. That is why your monthly budget now feels like it has holes.
5. How to Plan Around It
You cannot control PMS prices, but you can control how you respond. A few smart habits can make each spike less painful:
- Rethink your commute: Try carpooling with colleagues, using company buses, or living closer to work. Saving two hours of traffic often means saving two litres of fuel.
- Track your expenses: Stop estimating transport costs. Know them, write them down, and adjust based on trends.
- Budget for price shocks: Treat fuel price hikes like a recurring event. Set aside a small buffer fund every month.
- Negotiate hybrid work (if possible): If your job allows, ask for remote days to save transport costs.
- Use your vehicle wisely: Plan your errands together instead of making random trips. Nigerian traffic already takes enough from you.
6. Side Hustles That Help You Stay Afloat
Fuel affects everything, so the best way to cushion yourself is to earn extra income. Even a small side gig, such as content writing, thrift reselling, tutoring, or delivery coordination, can cover your transport or fuel budget.
Think of it as your personal PMS backup fund. You will be glad you built one.
7. What to Expect in the Coming Months
As long as the naira remains weak and global oil prices stay unstable, fuel prices will remain unpredictable.
There is a little hope ahead: with local refineries like Dangote, Nigeria may reduce dependence on imported petrol. That could lower or stabilize prices. Just do not expect that change immediately because Dangote buys crude oil in USD.
Final Takeaway
Fuel prices in Nigeria are like that one friend who keeps promising to change but never does. You cannot trust them, but you can learn to adjust around them.
The goal is not to wait for stable prices. It is to make your life stable despite them.