Nigerians Groan Under Fuel Price Hike as Concerns Mount Over Fuel Scarcity and Repercussions
As fuel prices continue to rise, Nigerians are increasingly chafing under the weight of the new costs. The Nigerian National Petroleum Company (NNPC) Limited has hiked prices yet again, and the effects are being felt at the pump.
Organised Labour has sounded the alarm, warning that the constant price increases are pushing workers to the brink and urging the government to take swift action to address the situation. “The fuel price hikes are getting progressively worse, and we’re on the cusp of social unrest,” said a Labour representative. “The situation is becoming increasingly unbearable, and the government must act swiftly to prevent widespread discontent.”
The representative, citing a recent meeting with government officials, noted that the ongoing price increases have created a climate of “excruciating hardship and misery.” “It’s like pushing a goat to the wall – eventually, it will bite,” they warned.
Meanwhile, the Chemical and Non-Metallic Products Employers’ Federation (CANMPEF) has reported that the subsidy removal has led to increased transportation and production costs, resulting in reduced household incomes and consumer purchasing power.
Other stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have also expressed concerns, citing difficulties in accessing petrol from the Dangote Refinery. The refinery, a $20 billion facility, is capable of producing refined petroleum products, but oil marketers are still importing fuel, rather than sourcing it locally.
IPMAN and the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) have expressed interest in purchasing from the Dangote Refinery, with PETROAN’s Billy Gillis-Harry stating that the association has reached out to the refinery to discuss buying terms and logistics.
In response to the price hike, thousands of filling stations in Lagos have adjusted their prices, with motorists rushing to purchase petrol before the new rates kick in. Meanwhile, many independent outlets in Abuja and other regions have opted to remain operational at the previous price.
The Nigerian National Petroleum Company Limited (NNPCL) has now set the price of Premium Motor Spirit (PMS) at ₦1,025 per litre in Lagos and ₦1,060 per litre in Abuja, making it the third price adjustment in just two months.
The latest price increase is attributed to the fall in Bonny Light crude prices, which have dropped from $75 to $72 per barrel, lagging behind the 2024 budget benchmark of $77.96 per barrel by 8.2 percent. This has led to further price increases at the pump, as the country adapts to the deregulation policy implemented by the Federal Government.
