Victor EzejaNigerians have reacted to the latest increase in pump price of Premium Motor Spirit (PMS) also know as petrol.
The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday, 29th October increased the pump price of petrol in Lagos from ₦998 to ₦1,025 and ₦1,060 in Abuja.
Join our WhatsApp ChannelThis is the third increase in the pump price of the commodity since September.
The fresh increase followed the 9th October 2024 hike, from ₦855 to ₦998. Also, on 2nd September 2024, the NNPCL retail outlet hiked the price per litre of petrol from ₦568 to ₦855, sparking outrage.
Some Nigerians took to social media to express their frustration with the new development.
An X user, Jami Rico said: “It’s actually evil to move fuel price from N145 to N1,030 in under 1 year while hiding under the lies of economic reforms.
“This is negative, sub zero economic reforms all caused by having a farmer as a president for 8 years and an emilokan philosophy without a plan.”
Another X user, Toimi, @bomein stated:
“What’s now the essence of a functional refinery and abundance of crude oil?”
“After two weeks, they will still increase the price. When you observe the pattern, they now increase the price of PMS every two weeks, so we expect another increment after two weeks.”
@Gabrielbolatit said: “They are gradually pushing people to the wall no one bargain for this pain oo. Suffering cannot be part of the bargain.”
Some said that going by the nature of things, the price of petrol may hit ₦2,000 in some months to come.
@Engr KOK said: “It’s going to ₦2,000. We keep managing and adjusting. They keep telling themselves, we will do nothing.”
@Nwafresh queried why states have not started implementing the new national minimum wage as fuel prices continue to rise.
“They’ve increased fuel price twice and states and FG are yet to pay the new minimum wage.”
Some said NNPCL has been selling petrol above ₦1,000 in their retail outlets in different parts of the state, and that it is no longer a news.
“I don’t get… But they have been selling it for that price since the beginning of this month.”
Reacting to the news of petrol price increase by NNPCL another X user, Mayowa David, explained that under a deregulated market, the federal government can no longer control it, adding that Tinubu don’t have power to increase pump price.
“Tinubu don’t have the power to raise the pump prices, NNPCL don’t have the power over other independent oil marketers… the oil market is deregulated and it’s not under the control of FGN, they can only add reliefs through subsidies… pump prices is now determined by forex and international oil price,” he stated.
Another user CobinaNG called on the government to address the problem, especially power crisis in the northern Nigeria.
“Tinubu should do something urgent about the light. Northerners are human beings too.
“Fuel price is high, and they don’t have light up to 2 weeks now is deliberate wickedness to northerners.”
The federal government had announced the commencement of the implementation of deregulation policy for the downstream oil and gas sector when the NNPCL withdrew from being the sole off-taker of refined petrol from Dangote Refinery.
Despite assurances that the deregulation policy would lead to efficiency in supply and stability of prices, the incessant hike in price of the commodity within a short time has become a source of worry to Nigerians who are forced to grapple with the ripple effect in terms of increase in costs of energy, transportation and food among others.
READ ALSO: Trekking Through Inflation: Nigerians Struggle With Rising Petrol Prices
With the deregulation, prices are to be determined by market forces, prices of crude oil in the international market and exchange rate.
Many Nigerians had thought that with the commencement of local production of PMS by Dangote Refinery, the petrol will become cheaper and available. However, with the persistent increase in price of the commodity many feel that the hope has been shattered.
Chairman of Dangote Group, Aliko Dangote, accused marketers of causing the scarcity. Dangote, who spoke to State House Correspondents after a meeting with President Tinubu and other members of the naira-for-crude implementation committee at the Aso Rock Villa on Tuesday, said his 650,000 barrels per day facility currently has half a billion litres of petrol in stock but marketers are not coming to lift the product.
He said the refinery has the capacity to meet local consumption demands.
“With enough crude oil, we can produce much more than 30 million litres every day. At full capacity, we can supply whatever is being consumed,” Dangote stated.
He faulted the continued importation of petrol by oil marketers and NNPCL despite the fact that the commodity was produced in his refinery.
“I have a refinery, I’m not in retail business. If I’m in retail business then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick (petrol). If they don’t come forward and pick, what do you want me to do?
“So, I am expecting either the NNPCL or the marketers to stop importing; they should come and pick because we have what they need. And as they move, I will be pumping,” Dangote stated after the meeting with the President in Abuja.
Experts and observers of trends in the Nigerian oil and gas sector express fear that the latest petr price hike may further spike inflation rate in the country, after it rose to a 28-year high (34.2 per cent) in June, which could compound the economic hardship in the country.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
