Following a recent increase in fuel prices, marketers provide insights into the factors driving the hike, while the NNPCL faces criticism for the added financial burden on Nigerians struggling with rising living costs.
Nigerians were taken by surprise with yet another hike in Premium Motor Spirit (petrol) prices, now ranging from N1,030 to N1,200 per liter. This increase is attributed to the Nigerian National Petroleum Company Limited and Dangote Refinery, led by Aliko Dangote.
This follows NNPCL’s decision to raise its fuel pump prices at retail outlets, increasing them from N855 and N897 to between N998 and N1030 per liter in Lagos and the Federal Capital Territory, Abuja.
In Enugu, the fuel prices were noted to be between N1,200 and N1,300 per liter, according to investigations by OBASANJONEWS.
This marks the second price increase since Dangote Refinery Petrol began distributing fuel on September 15, 2024, with NNPCL acting as the exclusive purchaser.
Investigations by OBASANJONEWS revealed that the price at Dangote Refinery, which began at N898 per litre on September 15, 2024, as reported by NNPCL, increased to N977 per litre.
According to sources familiar with the situation, the introduction of full deregulation following the launch of Dangote Refinery sparked price hikes over the past two months. As a result, fuel prices at NNPCL filling stations increased from N557 and N617 per litre to N998 and N1,030 per litre.
This development arises even though the Nigerian Government confirmed that the Naira-for-crude sale to Dangote Refinery began on October 1.
The recent increases in fuel prices have dashed the hopes of many Nigerians, already facing economic difficulties, for a reduction in product costs.
This follows several weeks after Aliko Dangote, the President of Dangote Group, recommended that the Nigerian government fully eliminate the fuel subsidy.
This demonstrated that the petrol pump price has increased dramatically since President Bola Tinubu assumed office in May 2023.
Specifically, the price increased from N195 per litre before the President took office on May 29, 2023, to N1,030 per litre by October 9, 2024.
In an exclusive interview with OBASANJONEWS on Wednesday, Billy Gillis-Harry, the President of PETROAN (Petroleum Products Retail Outlets Owners Association), stated that the recent price increase suggests that the Nigerian government has heeded advice from Aliko Dangote, President of Dangote Group.
READ ALSO: Fuel Price Hike: Ajaero Condemns NNPCL’s Role in Determining Dangote Refinery’s Pricing
If we consider Aliko Dangote’s suggestion from his Bloomberg interview that the president should fully eliminate subsidies and deregulate the downstream sector, this might be a step towards ensuring the implementation of the Petroleum Industry Act.
NNPCL, a leader in this industry, is demonstrating the right direction to take.
Nevertheless, if they’re selling at N1050 per liter in Port Harcourt, what would the landing price be for retailers?
“I believe the decision is reasonable given the sector’s volatility and fluctuating prices,” he remarked. “Prices may rise today but could drop tomorrow.”
Previously, Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association, attributed the recent increase in fuel prices to deregulation.
Fuel Price Increase: NLC, CPPE, and NACCIMA Demand Immediate Reversal
In response, the Nigerian Labour Congress, along with the Centre for the Promotion of Private Enterprise and NACCIMA (the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture), denounced the recent increase in fuel prices and demanded an immediate rollback.
This was revealed through individual statements.
President of the NLC, Joe Ajaero, expressed concern that the recent increase will exacerbate poverty in Nigeria.
Muda Yusuf, the Director of CPPE, stated in a press release shared with DAILY POST on Wednesday that Nigeria is not yet ready for complete deregulation of petrol.
The National President of NACCIMA, Dele Oye, stated that the recent increase will further exacerbate the hardships faced by Nigerians.
This occurs as Nigeria struggles with challenges due to elevated prices of goods and services.
In August, Nigeria experienced a headline inflation rate of 32.15 percent and a food inflation rate of 37.52 percent.
Throughout history, increases in fuel prices have directly influenced the cost of goods and services in Nigeria.
