Fuel costs rise in Lagos and Abuja following oil price hike
Nigerian consumers are facing a fresh round of economic pressure as the Nigerian National Petroleum Company Limited (NNPCL) has implemented another upward adjustment in the price of petrol.
As of Wednesday, January 28, 2026, the pump price has been hiked to N835 per litre in Lagos and N839 per litre in Abuja. This latest shift represents a significant jump from previous rates, further straining the budgets of citizens who are already struggling with the high cost of living under current “Renewed Hope” economic reforms.
The adjustment was triggered by a combination of rising global crude oil prices and the recent decision by the Dangote Petroleum Refinery to increase its ex-gantry prices. Dangote Refinery had earlier revised its price to N799 per litre, citing the “operational flexibility” needed to process various feedstocks while maintaining a steady supply of 50 million litres daily. Industry analysts note that without federal subsidies, the domestic pump price is now directly tethered to the international market, making volatility an expected part of the new “National” energy landscape.
In Abuja, the price rose by N24, moving from N815 to N839, while Lagos residents saw an even steeper increase of N50 per litre. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged the public to remain calm, arguing that increased competition among marketers will eventually stabilize the market. However, for many commuters and small business owners, the immediate reality is a sharp increase in transport fares and operational costs.
Central Bank predicts further increases for 2026
The outlook for the remainder of the year appears even more daunting according to the latest macroeconomic projections. The Central Bank of Nigeria (CBN) has forecasted that the pump price of petrol could average approximately N950 per litre by the end of 2026. This prediction is based on baseline assumptions of a steady exchange rate of N1,400/$ and an average crude oil price of $55 per barrel.
The CBN’s “Macroeconomic Outlook for 2026” suggests that while headline inflation is expected to slow down to 12.94%, energy costs will remain a critical variable. The bank noted that domestic refining capacity must continue to expand to help contain these costs in the long run. Until then, the removal of the petrol subsidy means that “market forces” will dictate the price at the pump, a transition that continues to be painful for the “National” populace.
Impact on transportation and the cost of goods
The immediate fallout of the price hike has been a visible increase in the cost of commercial transportation and the distribution of essential commodities. In cities like Ibadan and Port Harcourt, inter-city bus fares have already been adjusted upwards by at least 15%. This development is particularly concerning for agricultural producers who rely on petrol-powered vehicles to bring their goods to urban markets, raising fears of “food inflation” in the coming weeks.
Government officials maintain that the current hardship is a necessary “clog in the wheel” that must be cleared to ensure a more efficient and transparent petroleum sector. They argue that the trillions of naira previously spent on subsidies are now being channeled into critical infrastructure and social welfare programs. However, many Nigerians remain skeptical, calling for more immediate relief measures to cushion the effect of the fuel price surge.
As January 2026 draws to a close, the energy sector remains the most watched area of the economy. With Dangote Refinery and NNPCL retail outlets now leading the price adjustments, the days of “fixed” fuel prices are firmly in the past. For the average citizen, “Renewed Hope” is currently being tested by the reality of an N800+ per litre market.
