By Okeke Eunice
Nigerians were hit with the unexpected shock of another increase in Premium Motor Spirit (petrol) prices, now ranging between N1,030 and N1,200 per liter, a move orchestrated by the Nigerian National Petroleum Company Limited and the Dangote Refinery, owned by Aliko Dangote.
This development comes as NNPCL hiked fuel pump prices at its retail stations, raising them from N855 and N897 to N998 and N1,030 per liter in Lagos and the Federal Capital Territory, Abuja.
Meanwhile, Honorable Fm checks revealed that fuel prices in Enugu were between N1,200 and N1,300 per liter.
This marks the second fuel price increase since Dangote Refinery began distributing petrol on September 15, 2024, with NNPCL as its exclusive buyer.
According to Honorable Fm, Dangote Refinery initially set the price at N898 per liter on September 15, 2024, but it has since risen to N977 per liter, as reported by NNPCL.
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.
This development follows the Nigerian government’s confirmation that the Naira-for-crude arrangement with Dangote Refinery began on October 1.
However, the recent fuel price hikes have dashed the hopes of many Nigerians, already facing economic difficulties, for a reduction in product prices.
This comes just weeks after Aliko Dangote, President of Dangote Group, urged the Nigerian government to fully eliminate the fuel subsidy.
This indicates that petrol pump prices have skyrocketed since President Bola Tinubu took office in May 2023.
Specifically, the price increased from N195 per liter before the President assumed office on May 29, 2023, to N1,030 per liter as of October 9, 2024.
In an exclusive interview with a national television on Wednesday, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), stated that the latest price hike suggests that the Nigerian government has responded to the recommendations of Aliko Dangote, President of Dangote Group.
“If we truly heed Aliko Dangote’s call during his Bloomberg interview for the president to fully eliminate the subsidy and deregulate the downstream sector, this could be a significant step toward implementing the Petroleum Industry Act.
“NNPCL, as the leader in this sector, is demonstrating that this is the right direction.
“However, if the selling price is N1,050 per liter in Port Harcourt, what will the price be for retailers?”
“I believe the decision is reasonable given the sector’s volatility and fluctuating prices. Today, prices might increase, while tomorrow they could decrease,” he stated.
Previously, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association, attributed the recent fuel price hike to deregulation.
In response, 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 recent fuel price increase and demanded an immediate reversal.
This information was revealed in separate statements.
Joe Ajaero, President of the NLC, expressed that the recent increase will exacerbate poverty in Nigeria.
Muda Yusuf, Director of CPPE, also shared his thoughts in a statement provided to DAILY POST on Wednesday, stating that Nigeria is not ready for complete deregulation of petrol.
Dele Oye, National President of NACCIMA, remarked that the latest price hike will lead to increased hardship for Nigerians.
This occurs as Nigeria faces challenges due to rising prices of goods and services.
In August, the country’s headline inflation was recorded at 32.15 percent, while food inflation reached 37.52 percent.
Historically, increases in fuel prices have a direct effect on the costs of goods and services in Nigeria.