By Ologeh Joseph Chibu
Barely three weeks after a recent fuel price hike, Nigerians were shocked by yet another adjustment in petrol prices, as the Nigerian National Petroleum Company Limited (NNPCL) raised pump prices across the country.
Industry insiders predict further increases in the near future.
On Tuesday, NNPCL increased the price of Premium Motor Spirit (PMS) in Abuja to N1,060 from N1,030 per liter. In Lagos, the price was raised from N998 to N1,025 per liter, sparking backlash from civil society, organized private sector groups, and the general public.
With Nigeria’s inflation already at a 28-year high of 34.2% as of June, experts warn that this latest price hike could worsen the financial burden on citizens. Many expected relief from local petrol production, especially following the recent startup of the $20 billion Dangote Petroleum Refinery. Aliko Dangote, President of Dangote Group, questioned why NNPCL and other marketers continue importing fuel despite domestic production at his Lekki-based refinery.
The recent adjustment marks the third price change since September, part of Nigeria’s deregulation strategy allowing prices to fluctuate with market dynamics. Observations from NNPCL’s Wuse Zone 4 station in Abuja showed petrol at N1,060 per liter, while other locations in Central Abuja continued selling at the former price of N1,030, with long queues indicating demand spikes.
In October alone, petrol prices increased from N897 to N1,030, while in September, they climbed from N617 to N897. Since the elimination of fuel subsidies in May 2023, prices in Lagos have increased from N184 to the current N1,025 per liter.
Although NNPCL has yet to issue an official statement on the latest price increase, rumors swirled after the company began receiving shipments from the Dangote Refinery at N898 per liter in mid-September. Dangote initially refuted claims of this pricing, urging NNPCL to clarify its costs, which NNPCL later detailed in a price breakdown at its stations nationwide.
Despite the rise in petrol costs, global crude prices have recently declined, dropping approximately 8% from $78 to $72 per barrel. Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) has called on the government to discuss a N100 billion stabilization fund to support alternative sourcing of petroleum products, noting the volatility in fuel pricing.
As prices remain volatile, the public waits for an official response from NNPCL, which reportedly has yet to update its purchasing portal with the new rates, despite increased prices at stations in Abuja, Lagos, and Port Harcourt.