⛽ A litre of petrol that cost under two hundred naira before May 2023 now trades well above one thousand naira, and the fare you budgeted last month might already be out of date.
Everything explained below ⬇️⬇️⬇️
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STUDENT BUDGET IN NIGERIA: FOOD, DATA, TRANSPORT AND FEESBEST APPS TO PAY ELECTRICITY, CABLE AND INTERNET BILLS
If you filled your tank or paid for a ride at the start of this year, don’t assume that price still holds today. Nigeria’s fuel and transport costs have been anything but stable since the government ended the petrol subsidy on May 29, 2023, and the ripple effects are still moving through pump prices, ride-hailing fares and everyday bus and keke costs in 2026.
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This guide walks through what’s actually driving the cost pressure, how fuel, ride-hailing and public transport compare right now, and how to build a transport budget flexible enough to survive a market where prices can shift by over one hundred naira a litre in a single week.
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Why Fuel Prices Keep Moving in Nigeria
Nigeria’s fuel prices have not settled since the government removed the petrol subsidy on May 29, 2023, the day President Tinubu was inaugurated. Pump prices reportedly jumped from roughly ₦185 to ₦195 per litre to between ₦448 and ₦557 almost immediately, then to about ₦617 by June 2023, and industry trackers describe the cumulative increase by 2026 as over 600 percent from around ₦175 per litre. The swings have not stopped: in early July 2026, NNPCL reportedly cut its retail price to ₦1,150 per litre, part of a ₦110 per litre reduction in just over a week, with Lagos stations around ₦1,170 and Abuja around ₦1,210. The broader market, including non-NNPC outlets, has been reported between ₦1,100 and ₦1,400 per litre, with Dangote Refinery’s ex-depot price cited as a driver of the competition. Because prices genuinely move week to week, treat any figure here, including these, as a snapshot at publication rather than a fixed number.
Ride-Hailing, Public Transport, or Your Own Car: What Actually Costs Less
Ride-hailing apps have passed rising fuel costs on to riders. Techpoint Africa reported Bolt raised base fares by 15 percent in Nigeria following fuel price increases, and separately raised its Lagos minimum fare from ₦650 to ₦800 in earlier coverage, so treat these as two different adjustments rather than one event. One driver’s account, reflected in Techeconomy.ng reporting, described tank fill-ups rising from about ₦35,000 to over ₦65,000 without matching revenue growth, an illustrative example rather than an industry average. That pressure boiled over in mid-March 2026, when Uber, Bolt, InDrive and Lagride drivers in Lagos held a three-day strike over fares not keeping up with costs. Public transport stays cheaper per trip: danfo buses run roughly ₦100 to ₦300, okada ₦200 to ₦500, and keke ₦150 to ₦400, though it costs you time and comfort that ride-hailing buys back.
Building a Transport Budget That Survives Price Swings
Because pump prices and fares move by the week, a fixed transport line item breaks fast. Start by tracking two weeks of actual spending across whatever mix of fuel, ride-hailing and public transport you use, since general estimates of ₦10,000 to ₦35,000 a month from transport-cost trackers vary widely by city and commute. Split the result into two parts: a fixed portion for routine, predictable trips, and a flexible buffer sized for surge pricing, scarcity-driven price spikes, or last-minute ride-hailing when public transport isn’t an option. Where you can, mix modes deliberately, using cheaper bus, keke or okada fares for routine days and reserving ride-hailing for late nights or bad weather, which keeps the average per-trip cost down without cutting out convenience entirely. Moving that monthly allowance into a separate account or savings pocket on payday, the same target-savings approach many Nigerians use for rent, makes it easier to see when transport costs are running over budget before the money is gone.
| Transport Option | Typical Cost | Best For | Resource |
|---|---|---|---|
| Compare current pump prices → | Compare Bolt and Uber fares → | Check bus, keke and okada fares → | Compare savings and budgeting apps → |
⚠️ Watch Out for Black Market Fuel and Inflated Roadside Prices — During scarcity windows, roadside resellers sometimes sell petrol in jerrycans well above the official pump price, often with no receipt and no recourse if you’re shortchanged on quantity. Treat any price far outside the general ₦1,100 to ₦1,400 per litre market range as a red flag, and confirm the current NNPC price for your state before paying a premium out of panic rather than necessity.
Steps
- Check the current NNPC pump price for your state before assuming last month’s number still applies, since rates have moved by over one hundred naira per litre in a single week in 2026.
- Track your actual ride-hailing and public transport spending for two weeks to see your real average instead of budgeting from memory.
- Split your transport budget into a fixed portion for routine commutes and a flexible buffer for surge pricing, fuel scarcity, or unplanned trips.
- Move your monthly transport allowance into a separate savings or spending account on payday so fuel and fare costs don’t quietly eat into rent or feeding money.
Plan for the Swing, Not Just Today’s Price
Fuel and transport costs in Nigeria are not going to sit still, and a budget built around last month’s numbers will keep breaking. The more useful habit is building in a buffer and checking current prices before you commit to a big fuel purchase or a longer ride-hailing trip.
Track your real spending for a couple of weeks, split fixed commute costs from flexible ones, and keep that money somewhere separate so you can see clearly whether transport is taking a bigger bite out of your income than it should.
Frequently asked questions
How much has fuel gone up since the subsidy was removed?
Subsidy removal took effect May 29, 2023, when the petrol subsidy ended on President Tinubu’s inauguration day. Pump prices reportedly jumped from roughly ₦185 to ₦195 per litre to between ₦448 and ₦557 almost immediately, then to about ₦617 by June 2023, and by 2026 the cumulative increase is described as over 600 percent from around ₦175 per litre.
What is the current NNPC pump price?
As of early July 2026, NNPCL reportedly cut its retail price to ₦1,150 per litre, part of a cumulative ₦110 per litre reduction in just over a week. Lagos stations were priced around ₦1,170 per litre and Abuja around ₦1,210, but these figures move frequently, so confirm the latest price before budgeting around it.
Is ride-hailing or public transport cheaper in Nigeria right now?
Danfo buses, keke and okada fares, roughly ₦100 to ₦500 per trip depending on mode, are generally cheaper per trip than ride-hailing apps, which have raised base fares to pass on higher fuel and maintenance costs to riders, including a reported 15 percent base fare increase by Bolt.
How much should I budget for transport each month in Nigeria?
Rough estimates from transport-cost trackers put typical monthly transport spend around ₦10,000 to ₦35,000 depending on distance and mode, though this varies a lot by city and commute pattern, so tracking two weeks of your own spending gives a more reliable number than a general estimate.
Why do ride-hailing fares keep changing?
Fuel and maintenance costs cut directly into driver earnings, and in mid-March 2026 drivers for Uber, Bolt, InDrive and Lagride in Lagos held a three-day strike over fares not keeping pace with rising costs, which is one reason fare structures continue to shift.
Should I keep a separate account for transport money?
Separating a fixed transport allowance from your general spending account, similar to the target-savings approach many Nigerians use for rent, makes it easier to see when fuel or fare costs are running over budget instead of discovering it after the money’s gone.
Sources consulted: legit.ng, nnpcgroup.com, techpoint.africa, techeconomy.ng, nairametrics.com, ridetransport.com.ng (checked July 2026)
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Marc Smith is the founder of the Budget Geridibiase blog, where he uses his decade-plus experience as a financial consultant to simplify the world of finance, credit cards, and insurance. His mission is to translate complex topics into practical, accessible advice, empowering readers to make financial decisions with confidence and build a secure economic future.