Fuel Costs on the Rise: LATEST UPDATE on the Petrol Scarcity, Price Hike and Government-Citizens’ Reactions
A new report from Dangote Petroleum Refinery sheds light on the ongoing petrol scarcity in Nigeria, revealing that the Federal Government is falling short of its commitment to supply crude oil under the naira-for-crude initiative.
According to Dangote Industries Limited’s Vice President, Devakumar Edwin, the refinery has received only a fraction of the agreed volume of crude oil from the Nigerian National Petroleum Company Limited (NNPCL), which is insufficient to boost refined product output.
The NNPCL had pledged to supply at least 385,000 barrels per day (bpd) since the program’s launch in October. However, deliveries have been significantly below this target. “We need 650,000 bpd. NNPCL agreed to give a minimum of 385,000 bpd, but they are not even delivering that,” Edwin explained.
Despite these challenges, Nigerians can expect to enjoy slightly lower prices for petrol. The landing cost of petroleum products has suddenly plummeted, with data from major marketers, including the Nigerian National Petroleum Company Limited (NNPCL), showing a significant drop to ₦935.94 per liter from ₦977.
Filling stations across the country are expected to follow suit by reducing the price per liter of petrol for sale to the public. The landing cost of diesel also dropped to ₦1,071.8 per liter, calculated at the exchange rate of ₦1,659.37 per dollar.
According to the Major Energy Marketers Association of Nigeria (MEMAN), the ex-depot price for Lagos is set at ₦1,029 per liter for petrol, ₦1,120 per liter for diesel, ₦1,040 per liter for aviation fuel, and ₦1,125 per liter for LPG. The report also quotes the price for Compressed Natural Gas (CNG) at between ₦230 per scm and ₦450.
Recent exchange rate stability is credited with the slight crash in landing costs of petroleum products in Nigeria.
