News Update
Nigerians woke up to the rude shock of another Premium Motor Spirit (petrol) price increase to between N1030 and N1,200 per liter orchestrated by the Nigerian National Petroleum Company Limited and Dangote Refinery, owned by Aliko Dangote.
This comes as NNPCL increased its fuel pump price across its retail outlets from N855 and N897 to N998 and N1030 per liter in Lagos and the Federal Capital Territory, Abuja.
Also, the price of fuel in Enugu stood at N1,200 and N1,300 per liter, checks showed.
This is the second hike since the emergence of Dangote Refinery Petrol which commenced fuel distribution on September 15, 2024, with NNPCL as the sole-buyer.
Checks showed that Dangote Refinery, which started with N898 per litre on September 15, 2024, according to NNPCL, rose to N977 per litre.
Sources familiar with the development said total deregulation upon the entrance of Dangote Refinery is the genesis for the hikes in the last two months which saw fuel prices moved from N557 and N617 to N998 and N1,030 per litre at NNPCL filling stations.
The development comes despite the Nigerian Government’s confirmation that the Naira-for-crude sale to Dangote Refinery had commenced on October 1.
The recent fuel price hikes have eroded the hope of product price reduction for many Nigerians already in economic hardship.
This comes weeks after the President of Dangote Group, Aliko Dangote advised the Nigerian government to completely remove the fuel subsidy.
This showed that the pump price of petrol has surged astronomically since President Bola Tinubu came into office in May 2023.
Specifically, it moved from N195 per litre before the President assumed office on May 29, 2023 to N1,030 per litre, October 9, 2024.
On Wednesday, President of the Petroleum Products Retail Outlets Owners Association, PETROAN, Billy Gillis-Harry said the latest hike is an indication that the Nigerian government had listened to President of Dangote Group, Aliko Dangote.
“If indeed we listen to Aliko Dangote’s request in his Bloomberg interview on the fact that the president should remove subsidy completely and deregulate the downstream sector, maybe this is one step to ensuring that the Petroleum Industry Act is implemented.
“NNPCL which is the lead in this business is showing that this is the way to go.
“But even at that, if they are selling at N1050 per litre in Port Harcourt, what will now be the landing price to retailers?
“I think the decision is not a bad one because the sector is volatile and prices are fluctuating. Today, it may go higher and tomorrow it may come down”, he said.
Earlier, the Independent Petroleum Marketers Association’s spokesperson, Chinedu Ukadike, had blamed deregulation for the latest hike in the price of fuel.
Reacting, the Nigerian Labour Congress, the Centre for the Promotion of Private Enterprise, and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, condemned the latest fuel price hike and called for immediate reversal.
This was disclosed in separate statements.
President of the NLC, Joe Ajaero lamented that the latest increase will further worsen poverty in Nigeria.
The Director of CPPE, Muda Yusuf, who equally spoke in a statement on Wednesday, said Nigeria is not ripe for full-blown deregulation of petrol.
The National President of NACCIMA, Dele Oye, on his part, said the fresh hike is a catalyst for more hardship for Nigerians.
This comes as Nigeria grapples with hardship amid high prices of goods and services.
In August, Nigeria’s headline and food inflation stood at 32.15 percent and 37.52 percent.
Historically, fuel price increases directly impact the prices of goods and services in Nigeria.