Nigeria has seen a significant surge in the cost of Premium Motor Spirit (PMS), with the average retail price rising by 76.73% in April 2025 compared to the same month last year, according to the latest figures from the National Bureau of Statistics (NBS).
The average pump price climbed to N1,239.33 per litre, up from N701.24 in April 2024. Despite this year-on-year increase, April saw a 1.77% month-on-month drop from N1,261.65 in March 2025.
Regional Disparities: South East Most Affected
Among the six geopolitical zones, the South East recorded the highest average PMS price at N1,341.71, followed closely by the North West (N1,325.90) and North Central (N1,242.94). In contrast, the South West posted the lowest regional average at N1,138.64.
State-by-State Breakdown
Imo State emerged as the most expensive state for petrol buyers, with an average of N1,588.50 per litre, followed by Jigawa (N1,567.84) and Sokoto (N1,550.00). The lowest average prices were observed in Yobe (N970.00), Kwara (N1,014.85), and Osun (N1,042.49).
Refinery Pricing and Market Trends
Fuel prices across major cities like Abuja and Lagos hovered around N935 and N880 per litre, respectively. The Dangote Refinery, in mid-April, slashed its ex-depot price to N835 per litre, marking its second price reduction in a single week, likely in a bid to ease market pressures.
Energy Costs Fuel Inflation Perception
A recent survey from the Central Bank of Nigeria (CBN) identified energy costs—specifically petrol, diesel, and electricity—as the most influential factor shaping inflation expectations. 91% of surveyed individuals cited energy prices as a primary driver of inflation concerns.
Additionally, transportation expenses—including road, air, rail, and water travel—were seen as a major contributor to rising costs, cited by 86.7% of respondents.
The rising transport costs have been further exacerbated by the removal of fuel subsidies, tolls, port charges, and logistics-related expenses.
Inflation Shows Modest Decline
Despite the surge in fuel prices, Nigeria’s inflation rate dipped slightly to 23.71% in April, down from 24.23% in March, offering a faint sign of economic relief. On a month-to-month basis, inflation eased to 1.86%, compared to 3.90% in the previous month.
Conclusion
The sharp rise in PMS prices continues to impact Nigerian households and businesses, especially in the South East and other high-cost regions. While recent data offers some hope of inflationary slowdown, energy and transportation costs remain major economic stressors. Policymakers and stakeholders will likely need to implement more targeted interventions to stabilize fuel prices and mitigate their broader effects.
