Emmanuel OchayiMany Nigerians are unhappy with what appears a paltry reduction of petrol pump price as ‘Christmas Gift’ by the country’s national oil company. Recently, The Independent Petroleum Marketers Association of Nigeria (IPMAN) urged the Dangote Refinery to lower its ex-depot price from N970 per litre, citing a drop in the landing cost of petrol to N900.28 per litre.
According to a report on Saturday, The Nigerian National Petroleum Company Limited (NNPCL) has reduced the price of Premium Motor Spirit (petrol) across its retail outlets in the Federal Capital Territory, Abuja from N1,060 to N1,040 per litre. This represents a reduction of only 2%
Join our WhatsApp ChannelThis has sparked national debate, with Nigerians and industry experts calling for more reduction in pump prices to ease the burden on citizens during the festive period not only in Abuja but all over the country.
Current Situation in the Petrol Market
The Federal Executive Council (FEC) had earlier approved President Bola Tinubu’s proposal to sell crude oil to local refineries in naira. As part of this plan, the NNPCL was mandated to supply 385,000 barrels per day of crude oil to the Dangote Refinery from October 1. Despite this arrangement, reports suggest that the refinery’s supply needs are far from being met.
Speaking on the situation, Vice President of Dangote Industries Limited, Devakumar Edwin, revealed, “We need 650,000 barrels per day. NNPCL agreed to give a minimum of 385,000 bpd, but they are not even delivering that.” This shortfall has forced the refinery to resort to crude oil imports to sustain production and begin exports to neighbouring West African countries.
Nigerians Voice Their Concerns
Many Nigerians are frustrated with the current petrol price, especially as the festive season is known for increased travel and heightened consumer spending. Traders, transporters, and daily commuters are calling for immediate action.
“It’s unfair that during this period of celebration, we still have to pay so much for petrol,” said Chuka Eze, a commercial bus driver in Lagos. “Last year, we saw long queues at stations. This year, there are no queues, but the price is hitting our pockets. Why should we suffer every festive season? The government needs to act fast so that Petrol Price can be reduced more for Nigerians to enjoy this Christmas and New year period”
Grace Obinna, a market trader in Lagos Market, expressed her concern about how the petrol price hike has impacted her business. “Every price increase affects us directly. I now pay more for transportation to get my goods to the market,” she said. “If they reduce petrol prices, it will reflect on transport costs and reduce the price of food items I sell. We need a reduction now, not promises.”
READ ALSO: Yuletide: Nigerians React To Petrol Price Shift, Experts Debate Domestic Refining vs. Imports
Similarly, Emeka Chukewueze, a civil servant in Lagos, noted that the high petrol prices are affecting his travel plans for the yuletide as part of his ritual every year. “My family travels to the village every December, but with the price of fuel this high, I may have to reconsider. The government should step in and reduce it before Christmas,” he pleaded.
Experts Weigh In
Industry experts have also shared their perspectives on the current petrol price and the potential for reductions. IPMAN’s National Publicity Officer, Chinedu Ukadike, highlighted that market forces and foreign exchange rates play key roles in determining the ex-depot price. He, however, emphasised the importance of competition in stabilising prices.
“The cost of production is peculiar to any refinery,” Ukadike explained. “Dangote Refinery’s production cost must be reviewed, especially as it has reduced its price twice already from N990 to N970 per litre. The naira’s recent gains should have an impact on the price, and the government’s crude-for-naira initiative should drive prices down further. Whether Dangote will reduce its price is up to them, but Nigerians deserve relief during this period.”
In agreement, petroleum economist Dr. Tunde Adebayo stated that market forces should naturally push down petrol prices. “The cost of landing has dropped, and we’re seeing the naira regain some value. These factors should reflect in the pump price,” Dr. Adebayo said. “The whole idea behind deregulation was to make pricing competitive. If Dangote is still importing crude, it’s a sign that local supply issues need to be resolved. We expect to see reductions in the ex-depot price, and this must be passed down to consumers.”
Path Forward: Will Petrol Price Reduce Before the Yuletide?
As the yuletide draws near, Nigerians are watching closely for signs of relief. For many, the reduction in the landing cost of petrol is a valid reason to expect a drop in pump prices. However, industry insiders warn that several factors could influence this decision.
Dr. Adebayo cautioned, “We’re in a deregulated market now. While government intervention might have been possible before, the dynamics have changed. What’s needed is for regulators to ensure that market forces are allowed to function freely. If competition drives down prices, everyone benefits.”
Meanwhile, commuters like Emeka Chukwueze hope for good news before Christmas. “The government should act fast. We’re tired of hearing reasons why prices stay high,” he said. “We just want the price to reduce so we can celebrate the season with our families.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
