Keypoints
- The average retail price of petrol in Nigeria jumped by 22.55 per cent in one month, rising from N1,051.47 in February to N1,288.54 in March 2026.
- Diesel prices followed a similar upward trend, increasing by 16.05 per cent month-on-month to reach an average of N1,648.08 per litre.
- Anambra State recorded the highest petrol price at N1,441.22 per litre, while Ebonyi saw the highest diesel cost at a staggering N2,262.29.
- Economists attribute the sharp increase to the US-Iran war and the closure of the Strait of Hormuz, which has significantly pushed up global Brent crude prices.
- Experts warn that the rising cost of fuel is driving up transportation expenses and could trigger a new wave of inflation across the country.
Main Story
Nigerian consumers and businesses are facing a fresh wave of economic pressure as fuel prices soared in March 2026.
According to the latest Price Watch reports from the National Bureau of Statistics (NBS) released on Tuesday, April 28, the cost of both petrol and diesel has moved significantly upward. Petrol, which averaged roughly N1,051 in February, surged to nearly N1,289 in March, while diesel crossed the N1,600 mark.
The primary driver behind this spike is not domestic, but global. Geopolitical instability in the Middle East, specifically the escalating US-Iran conflict—has led to the closure of the Strait of Hormuz, a critical chokepoint for global oil shipments.
This disruption has sent Brent crude prices climbing, and as a result, the landing cost of refined products in Nigeria has skyrocketed. Economists like Opeyemi Alabi warn that with petrol already selling for as high as N1,600 in some regions, the ripple effect on food prices and general services will be felt by every household in the coming months.
The Issues
The primary challenge is the supply-chain-vulnerability gap; because Nigeria remains heavily dependent on imported refined petroleum, any conflict in the Middle East immediately translates into higher prices at local pumps in Lagos or Abuja. Authorities must solve the problem of transportation-inflation, as the 22 per cent jump in petrol prices is already being passed on to commuters and traders, making basic goods more expensive. Furthermore, there is a regional-price-disparity risk; the fact that a litre of diesel costs N2,262 in Ebonyi but only N1,383 in Kogi suggests significant logistical bottlenecks and possible price gouging in certain zones. To succeed, the government must accelerate domestic refining capacity to buffer the country against these external global shocks.
What’s Being Said
- “The US-Iran war has disrupted supply chains and pushed Brent crude oil prices higher significantly,” stated economist Opeyemi Alabi.
- Alabi added that the closure of the Strait of Hormuz has had “clear ripple effects” on the rising fuel and diesel prices witnessed in Nigeria.
What’s Next
- Market analysts expect petrol and diesel prices to remain volatile as long as the conflict in the Middle East remains unresolved.
- The Central Bank of Nigeria (CBN) is anticipated to monitor these energy costs closely to determine if further interest rate adjustments are needed to curb the expected spike in inflation.
- Logistics and transport companies are likely to announce upward reviews of their fares and freight charges to cover the increased cost of diesel.
- There will be renewed pressure on the government to ensure that local refineries like Dangote and the Port Harcourt refinery are operating at peak capacity to reduce reliance on the disrupted global market.
Bottom Line
The surge in March fuel prices is a reminder that Nigeria’s economy is deeply tied to global stability. While the price of petrol has increased by 22 per cent in just 30 days, the real cost will be measured in the rising price of bread, transport, and electricity as the country navigates this global energy crisis.
