- The Nigerian National Petroleum Company Limited (NNPCL) has increased petrol prices to N1,025 per litre in Lagos and N1,060 in Abuja, marking the third hike in 60 days
- This rise comes despite a decrease in the price of Nigeria's Bonny Light crude, which has fallen to $72 per barrel
- Experts and civil groups are urging the government to implement social measures to ease the financial burden on citizens amidst escalating fuel costs
The Nigerian National Petroleum Company Limited (NNPCL) has increased the price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,025 per litre in Lagos, up from N998 per litre.
In Abuja, the price has risen to N1,060 from N1,030. This marks the third price hike in just 60 days, despite a recent decline in the price of Nigeria's Bonny Light crude, which has dropped to $72 per barrel from $75.
The latest adjustment has prompted immediate changes at filling stations across Lagos, with motorists flocking to locations where prices have not yet been updated.
Earlier this month, the NNPCL raised petrol prices from N897 per litre to N1,030, following the Federal Government’s decision to deregulate petrol pricing.
Industry insiders noted that while major marketers quickly adjusted their prices, some independent marketers, like Ardova Plc, were still selling petrol at the previous rate of N1,125 per litre.
NNPCL spokesman Olufemi Soneye was unavailable for comment, but sources indicate that the latest price adjustment is a result of market forces following the deregulation of the downstream sector. The weakening naira, currently at N1,664 to $1, is also contributing to the rising costs.
Expert Reactions
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), highlighted the need for the government to consider social measures to alleviate the burdens on citizens.
He emphasised the necessity of addressing the economic hardships many Nigerians are facing as prices continue to climb.
A major oil marketer expressed hope that prices might stabilize in the coming weeks due to falling crude oil prices.
He urged the government to reduce operational costs and offer incentives to Small and Medium Scale Enterprises (SMEs) that are heavily impacted by these price increases.
Call for Action Against Price Hikes
The Joint Action Front (JAF) and the Movement for a Socialist Alternative (MSA) have called for Nigerians to oppose the continuous hikes in petrol prices.
MSA General Secretary Dagga Tolar condemned the recent increase, which he said adds to the financial strain on households already suffering from rising living costs.
"The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) must take immediate action to protect workers from these exploitative policies," Tolar stated, urging unity among the working masses to challenge the government's approach to fuel pricing.
Independent Marketers Prepare for Increases
Reports indicate that independent marketers are preparing to raise their prices as they often follow NNPCL's lead. Some are already selling petrol for as high as N1,150 to N1,200 per litre.
President’s Call for Local Production
In response to the ongoing challenges in the oil sector, President Bola Tinubu has urged industry stakeholders to focus on local production of petrol and petroleum products to reduce reliance on imports. During a recent meeting, he emphasized the importance of using the naira for crude and refined product sales to alleviate foreign exchange challenges.
The President commended the implementation committee on naira-based sales and encouraged collaboration between NNPCL and Dangote Refinery to enhance local fuel supply.
Minister of Finance Wale Edun assured that the government's commitment to naira-based sales would not be reversed, while Dangote Group CEO Alhaji Aliko Dangote confirmed that his refinery has substantial fuel reserves to support domestic needs.
As the government seeks to stabilize the oil sector and improve economic conditions, the focus remains on addressing the escalating petrol prices and their impact on Nigerians.
Nigeria aims for 18,000 CNG conversions by year-end to push shift from petrol, diesel
Meanwhile, TheRadar earlier reported that the Federal Government distributed 1,200 CNG conversion kits to five states in Nigeria, to achieve 18,000 conversions by year-end.
Over 130 conversion centres were reportedly operational with plans to expand to 250 by year-end.
