The price of Premium Motor Spirit (PMS) has seen a significant increase, with the Dangote Petroleum Refinery adjusting its price from N1,175 to N1,245 per litre. This adjustment reflects the volatile global oil market, where Brent crude recently climbed above $102.84 per barrel due to the ongoing conflict in the Middle East. West Texas Intermediate also rose to $91.20 per barrel.

The surge in global oil prices is directly impacting Nigeria, with the Dangote Refinery citing changes in crude oil prices and rising shipping costs as reasons for the domestic price hike. The refinery's ex-depot price has been adjusted from N1,175 to N1,245 per litre, and its coastal price increased from N1,512,648 to N1,606,518 per metric tonne.

Aliko Dangote, President of the Dangote Group, met with President Bola Ahmed Tinubu to discuss the implications of these global market movements. Dangote acknowledged that Nigeria would inevitably feel the effects of the crisis, warning that a prolonged conflict could further strain economies, particularly in Africa, which is already grappling with debt challenges.

The International Energy Agency's Executive Director, Fatih Birol, echoed these concerns, warning that the crisis poses a major risk to the global economy, describing it as equivalent to two oil crises and one gas crash combined. He stressed that no country will be immune if the situation continues.

Mobility Reshaped by Rising Fuel Costs

In Nigeria, the escalating fuel prices are fundamentally altering how citizens commute. Transport costs have more than doubled, with pump prices increasing by 43.7 percent from N835 per litre to over N1,200 per litre. This has forced many households to perceive transportation as a burden and seek cheaper alternatives.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has proposed measures to mitigate these effects. Billy Gillis-Harry, PETROAN's National President, suggested a transport subsidy for commercial transport owners as an interim solution. He also emphasized the need to pursue gas alternatives, advocating for increased investment in Compressed Natural Gas (CNG) stations and the introduction of electric vehicles (EVs).

In line with this, President Bola Tinubu has directed the immediate deployment of approximately 100,000 Compressed Natural Gas (CNG) conversion kits across the country. This initiative aims to cushion the adverse effects of escalating global oil prices and the Middle East conflict.

The rising fuel prices are leading to a noticeable shift in mobility patterns. Nigerians are reducing private car usage, with a 70-liter fuel tank now costing N84,000 to fill, up from N58,450. This has led to increased reliance on public transport, including Bus Rapid Transit (BRT) and trains, especially in Lagos State.

Furthermore, shared mobility options are gaining traction. Nigerians are increasingly opting for ride-hailing services where multiple passengers share a ride to similar destinations, a practice known as carpooling, to reduce individual costs. Some private car owners are also turning to commercial use of their vehicles to generate extra income amidst the rising cost of living.

Gillis-Harry also addressed concerns about marketers exploiting the situation, stating that PETROAN is not taking undue advantage and is working with the government to support gas infrastructure expansion. He expressed gratitude to the Dangote Refinery for ensuring product availability.