Nigerians were incensed when the Nigerian National Petroleum Company Limited changed the pump prices of the commodity on Tuesday, barely three weeks after it had raised the price of Premium Motor Spirit, also known as petrol. Oil marketers anticipate more price increases in the near future.One of our correspondents saw that the national oil company increased the retail price of gasoline in Abuja from N1,030 to N1,060 per litre on Tuesday at several NNPCL stations in the Federal Capital Territory.
Group CEO, NNPCL, Mele Kyari
NNPCL stations in Lagos raised the commodity’s unit price from N998 to N1,025 per litre, a move that was widely criticised by the organised private sector, civil society organisations, and Nigerians in general.Following the most recent hike, which caused inflation to reach a 28-year high of 34.2% in June, experts and influential figures in Nigeria’s oil and gas industry are concerned that the country’s already dire situation may worsen.
This occurred as the Dangote Petroleum Refinery criticised oil marketers and NNPCL for continuing to import petrol even though the $20 billion Lekki-based plant in the country was producing the commodity domestically.President Bola Tinubu summoned Alhaji Aliko Dangote, the president of the Dangote Group, along with Wale Edun, the finance minister, and Mele Kyari, the group chief executive officer of NNPCL, to address the issue in Abuja on Tuesday.“I have a refinery, I’m not in retail business. If I’m in retail business then you can hold me responsible. However, what I am saying is that the retailers ought to step up and choose (petrol). Do you want me to do something if they do not come forward and pick?
Therefore, I anticipate that the marketers or the NNPCL will cease importing; they ought to come and choose since we have what they require. And I will be pumping as they go,” Dangote said following the Abuja meeting with the president.Price increase for PMSIn Lagos, the price of petrol has increased by N27, while in Abuja, it has increased by N30.
The government’s deregulation policy, which permits price fluctuations based on supply and demand dynamics, includes this adjustment, which also represents the third price change between September and October 2024.The commodity was offered for sale at its mega station along Wuse Zone 4 for N1,060 per litre.However, the product was still selling for N1,030 at its station on Olusegun Obasanjo Way in Central Area, and commuters were rushing to get in queue.The October 9, 2024, hike from N897 to N1,030 was followed by the new increase. Additionally, the NNPCL raised it on September 2, 2024. Nationwide indignation resulted from the retail company’s increase in the price of gasoline from N617 to N897 per litre.
The NNPCL progressively raised the price of gasoline at the pump from N184 in Lagos to N1,025 since the president’s May 2023 announcement that the “subsidy is gone.”The NNPCL hinted at a new price increase when it started loading its first batch of petrol from the Dangote Refinery in mid-September, even though the oil company has not released an official statement regarding the most recent increase in prices, similar to what it did during its last hike earlier this month.Following that, it declared that it would sell petrol for N950 per litre in Lagos and N1,019 per litre in Borno after purchasing it from the private refinery for N898 per litre.Dangote Refinery immediately refused to sell the NNPCL petrol at N898, but the latter pressed the refinery to disclose the price at which it sold the product.
A breakdown of Dangote petrol prices at its filling stations nationwide was also made public by the NNPCL.Africa’s top industrialist, Dangote, started producing 350,000 barrels per day at his $20 billion facility in Lagos last December.The most recent increase caused confusion among analysts, particularly since the price of crude oil fell by about 8% to $72 per barrel from $78 per barrel on the global market.
Billy Gillis-Harry, president of the Petroleum Retail Outlets Owners Association of Nigeria, stated that the market price has not yet stabilised.The situation is pitiful, and we hope the President will call us to discuss our proposed N100 billion offer to stabilise the price of petrol. We will be assured of alternative product sourcing thanks to it.Joseph Obele, the National Publicity Secretary of the Petroleum Retail Outlet-Owners Association of Nigeria, stated that prior to the oil company’s price increase on Tuesday, members of the association were purchasing PMS from the NNPC for N1,040 per litre.He clarified that neither the price on the purchasing portal nor a memo announcing the price increase had been released by the NNPC.”The NNPC has not sent us any memos.
The news of the price increase is making the rounds on social media. However, we have not yet received a memo to that effect from our national headquarters, and our purchasing portal has not yet updated to reflect it.”We book products on the NNPC Retail Buying Express, a buying portal used by retail outlet owners and marketers licensed by the NNPC. As of right now, the amount on that portal is still the same. We have not seen it on our portal yet, but there are signs that the price will be reviewed higher in the coming days,” Obele said.When asked how much the marketers spend at NNPC, Obele replied that those in Lagos paid between N1,020 and N1,030 for a litre, while those in Port Harcourt paid N1,040.
Despite the fact that our portal rate has remained unchanged, there are signs that another price increase may be imminent. According to Obele, “there may be a review in the coming days because we are aware that the NNPC retail outlets in Lagos and Abuja have adjusted prices in the early hours of today (Tuesday).” The sector’s permutations help us determine when we are expecting an upward review.The price of gasoline on Tuesday was N1,025 per litre at the NNPCL fuel station in Ikotun, Lagos.
The NNPCL gas station on the Ogudu Motorway also sold gasoline at N1,025 per litre, according to the PUNCH. A long queue of cars was waiting to purchase the item.OPS kicksSegun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, responded to the recent increase in PMS prices by NNPCL by stating that the increase would cause further hardship in the nation.
The cost of production will rise as a result, raising the cost of goods and services. As a result, it will raise inflation even more and make local goods more expensive. If foreign goods are less expensive than local ones, people will turn to them, which will cause local industry to further collapse, Kuti-George stated.”The cost of goods and transportation will increase, which will impact food prices and cause additional hardship for the populace.”
”The fuel increase was also denounced by Dele Oye, National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture.He stated, “The Nigerian National Petroleum Corporation recently decided to raise the price of Premium Motor Spirit from N998 to N1,025 in Lagos and N1,060 in Abuja. As the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, we feel compelled to address this decision.”
“We must regret the decision’s wider ramifications, even though we recognise the market’s complexity and the necessity for adjustments.”Oye claimed that because of the naira’s constant depreciation, Nigerians were unable to profit from recent drops in the price of crude oil internationally.”Any global price relief is negated by rising domestic fuel prices,” he continued, adding that the Central Bank of Nigeria’s incompetent management and ineffectual monetary policies are largely to blame for the currency’s ongoing decline in value.
It is indisputable that the value of the naira and the prices of crude oil on the global market are correlated. We will continue to be responsible for rising costs until this relationship is resolved.He asserts that given the state of the economy, President Tinubu’s decision to raise fuel prices may be justified.
“We, however, condemn this approach due to its adverse effects on businesses and consumers alike. The increased fuel prices will undoubtedly lead to higher transportation fares, further straining household budgets and increasing the cost of goods and services across various sectors,” Oye added.“This reinforces inflationary pressures that are already affecting all aspects of life in Nigeria.
We urge the administration to prioritise the stabilisation of the naira as a means of mitigating inflation and supporting the economic circumstances of everyday Nigerians. Without such a foundational approach, we will find ourselves trapped in a cycle of escalating prices, diminishing purchasing power, and an increasingly challenging business environment.”The Director, Centre for Promotion of Private Enterprise, Dr Muda Yusuf, said the government needed to consider the welfare of Nigerians in policies surrounding energy prices.Yusuf noted energy prices and the exchange rate were volatile, adding that policymakers needed to be cautious.
“The Nigerian economy is highly vulnerable to volatilities in energy prices and the exchange rate. Those two volatilities need to be carefully managed by the policymakers. As far as possible, those volatilities should be significantly moderated or reduced.”He urged balance in economic reforms and called for a more sustainable approach.The economist added, “Even within the context of the economic reform agenda, we (policy makers) should be conscious of ensuring a balance between commercial, fiscal and social objectives.
“Those three are critical to an economy that will make progress sustainably and (policymakers ought to) take the need for inclusion into consideration.“You need to be careful to not have an economy that leaves too many people behind.
Social considerations in the economic policy process are as important as fiscal and commercial considerations“That balance is very important. The government needs to commit a lot more to reducing these two critical volatilities.”CSOs lamentThe Executive Director, Civil Society Legislative Advocacy Centre, Auwal Musa Rafsanjani, urged the government to block the corruption and leakages in the fuel subsidy system and tax the wealthy, to mitigate the difficulties and challenges brought about by the increase in fuel prices.
Rafsanjani said, “The Nigerian government should understand that all over the world, including countries with oil and non-oil, they make efforts to provide subsidies for their citizens, whether in terms of fuel, transportation, agriculture, education and health because there is a rationale for providing subsidies for citizens, especially those unable to meet the necessities of life. So, it is only proper that the Nigerian government reasons along that line.“What the Nigerian government needs to do is to block the corruption in the fuel subsidy. It is not about the fuel subsidy; it is the corruption in the fuel subsidy that the government should have worked on.
“Our only plea is that the government should block corruption, block leakages and tax those who are not paying taxes. You know the rich men and women are not paying taxes, the international corporations are not paying taxes. And these are the areas where they could utilise to mitigate the difficulties and challenges Nigerians are going through,” he said.
The Chairman, Centre for Accountability and Open Leadership, Debo Adeniran, said the decision of the government could “stoke the embers of discord and unleash the people’s anger against the government, adding that Nigeria should look inward to ensure that it does not consume what it doesn’t produce.”He added, “What the government is doing is to stoke the embers of discord. Of course, the administration is losing support daily, and it will get to a stage whereby nobody will be able to stop the people’s anger. And when the people’s anger is unleashed on the government, we can’t predict what will end it. For so many years we have been articulating workable alternatives to economic reconstructive strategies that they are adopting.
“And we are saying that they should look into ensuring that corruption is controlled, the potential of this country is harnessed, stolen monies retrieved, gains of subsidy withdrawal applied to touch the lives of the generality of the people.“People should be deliberately empowered to do their businesses in such a way that they will make enough profit with which they can solve their socio-economic problems. Nigeria should begin to look inwards rather than outwards to ensure that whatever we cannot produce, we do not consume.”Nigerians express frustrationNigerians took to social media on Tuesday to vent their frustrations and resignation over the new fuel price increase.
An X user, Godwin Onoghokere, lamented the relentless rise in fuel costs.“President Tinubu increased fuel pump prices today (Tuesday). Recently NNPC hiked fuel prices to about N1,030 per litre in Abuja and N998 in Lagos. This new increment will see Nigerians in Abuja and Lagos buy petrol for N1,060 and N1,025 per litre respectively,” Onoghokere posted, speculating the price may hit N1,500 per litre by December.Jeremiah Adamu expressed a sense of resignation over the government’s moves.“Nigerians don’t care anymore on the issue of Tinubu APC fuel increase,” he stated. “If he likes, as Minister of Petroleum, he should take the fuel pump price to N5,000 per litre.
The filling stations are already empty.”Others called for action, with Makyur Benjamin suggesting a potential boycott.“Truth be told, Nigerians are the real problems of this country. As they are increasing the price, we should learn to stay away from the stations,” he wrote.Some others expressed concern about even more increases in the coming months. “The fuel pump price has risen to N1,350. I forecast it will exceed N1,500 officially prior to the Christmas holiday. This surge is troubling,” posted Zaki Chimin.
For many, the fuel price increase adds to other daunting economic issues.“There has been no light in the north for the past seven days or so,” wrote Jabi Dregs. “Most businesses will hit rock bottom as capital is lost in damaged goods.
Fuel pump prices have jumped again today (Tuesday)! But you all are still arguing about football since last night.”Other users defended the government’s actions as part of a deregulated market. “The market is fully deregulated. It’s one of the features of a free market. Market forces control the price now,” posted Utor Celestine.The government’s deregulation policy and rising inflation have increased pressure on Nigerians, leaving many questioning the sustainability of daily living expenses.
