The Nation Newspaper

Tag: fuel price

  • Fuel price drops to N800 per litre in Edo

    Fuel price drops to N800 per litre in Edo

    Owners of petrol stations in Edo State have begun adjusting the pump price of premium motor spirit, popularly known as fuel.

    The adjustment is coming one week after Alhaji Aliko Dangote announced a drop in petrol price to N699.

    Dangote had said consumers would buy fuel at N750 per litre from last Tuesday, but checks showed that no petrol stations in Edo were selling at N750 per litre as at press time.

    The price of fuel in Edo State had ranged between N895 and N940 per litre before Dangote announced the reduction.

    A visit to many Petrol Stations in Benin City metropolis showed that only Raptor Filling Station along Sapele road sold fuel at N800 per litre.

    Other Petrol Stations sold at between N840 and N900 per litre.

    Managers in most of the petrol stations visited declined to comment.

    Some said they were not among those under the Dangote free fuel distribution initiative.

    They said they were still having old stock and had yet to purchase fuel at the new price of N699 per litre from Dangote Refinery.

  • Fuel price reduction: Commercial drivers in Ibadan express relief

    Fuel price reduction: Commercial drivers in Ibadan express relief

    Some commercial motorists in Ibadan have heaved a sigh of relief at the reduction of the pump price of petrol.

    However, speaking with the News Agency of Nigeria (NAN) on Thursday, the motorists asked for a more significant reduction to increase their purchasing power.

    A commercial motorcyclist, Ismaili Olamilekan, said the price drop is about N100 per litre.

    “While some filling stations are still selling between N930 and N950 per litre, others are selling between N870 and N890.

    “I usually buy fuel where it is cheaper, but we pray that it will be sold between N400 and N500 per litre. This is what we are praying for.

    “Before the reduction, if I buy N1,500 worth of fuel, it doesn’t serve me well, but now, I see an appreciable gain,” Olamilekan said.

    A taxi driver, Mr Waheed Ajasa, says he now buys petrol at N870 or N875, whereas some filling stations sell at N940 or N945.

    “At Moniya area of Ibadan, the latest price is either N865 or N870.

    “We have seen some positive changes in our business due to this,” he said.

    The taxi driver, however, said the reduction was not significant enough to cause transportation fare to drop.

    Similarly, a commercial tricyclist, Mr Abdulamin Mustapha, said the situation had brought a notable difference in the transportation business.

    Mustapha, celebrating the reduction, said the public would have complained if the price had increased by N5.

    “So, we are happy that the story is about reduction. We thank God.

    “We want the government to ensure its continuous decline to improve the economic situation.

    “Although there is no uniform price for petrol, it seems that N870 is gaining ground and will soon cut across all the filling stations.

    “We are having it good now as we are enjoying the increase in the gain we make in this business,” he said.

    Nevertheless, another taxi driver, simply identified as Otunba, said the fuel pump price was still too expensive.

    Read Also: NNPCL: No fuel price reduction

    According to him, it has not been supporting the transportation business.

    “We buy at N870 or N875, and it is still not okay to make good income as most of the money made is spent on the buying of fuel.

    “With 10 litres of fuel, you cannot go more than three turns; going and coming.

    “This is a shortage compared to when the fuel was not this expensive.

    “We want the price to be further reduced.

    “Though the people are already clamouring for a reduction in transport fare, this cannot happen yet because there has not been a huge reduction in fuel pump price,” Otunba said.

    Meanwhile, an anonymous taxi driver frankly said the economic situation of Nigeria needed to improve for the respite of every Nigerian.

    (NAN)

  • Fuel price slash by Dangote refinery, timely relief for Nigerians – NLC

    Fuel price slash by Dangote refinery, timely relief for Nigerians – NLC

    The Nigeria Labour Congress (NLC), Lagos Council, has lauded Dangote Refinery over the recent slash in  fuel price, describing it as a timely economic relief for Nigerians.

    NLC State Chairman, Funmi Sessi, who made the commendation in a statement on Wednesday, said that Dangote Refinery came at the right time.

    Sessi expressed optimism that the reduction would ease transportation costs, lower the prices of goods and services, and provide financial relief for citizens struggling with the high cost of living.

    “This adjustment promises to offer much-needed relief for millions of Nigerians who have been grappling with high fuel prices and the rising cost of living.

    “If not for Dangote refinery, we believe that government may still be importing fuel.

    “However, now, Dangote is producing about 650,000 litres of barrel per day, while both Port Harcourt refinery and the other refurbished ones are producing about 210,000 litres of barrels per day, which is not even up to half of what Dangote is producing.

    “With this, Dangote has brought a healthy rivalry to the sector and we have started seeing reduction in the petroleum price, “ she said.

    The chairman also noted that Dangote refinery had begun exporting petroleum to countries such as Ghana, Togo and others.

    According to her, this means that it will bring stability to  the country’s currency.

    “At this instance, we want to give it to Dangote. We also appreciate its timely intervention.

    “Do not also forget that the National Assembly is trying to bring out a bill that Nigerians should start domesticating her own currency.

    “It is so disheartening that our currency is no more strong, even in the West Africa region.

    “Therefore, the government should encourage Dangote and more players coming on board because this will allow a healthy rivalry.

    Read Also: Afenifere Youths hail Dangote Group for festive fuel price reduction

    “We welcome this relief, which will help many Nigerians struggling due to the high cost of living, and we urge other stakeholders to emulate the Dangote Group’s example for the benefit of all Nigerians,” Sessi said.

    Speaking on the proposed 2025 budget, the chairman said that if the government could be strict in its implementation, there would be hope of economic revival.

    She said: “With the budget , we can see that there is hope for Nigeria, most especially, if government can be strict in its implementation, there will be improvement in  security, food production and other areas of the economy.”

    (NAN)

  • Hidden charges behind fuel price increment, CSO alleges

    Hidden charges behind fuel price increment, CSO alleges

    The Coalition for Energy Reforms and Good Governance Advocacy has accused the Nigerian National Petroleum Company Limited (NNPCL) of deliberate mischief, citing hidden charges as the reason behind the recent fuel price increment.

    According to the coalition, the NNPCL’s decision to systematically raise the price of Premium Motor Spirit (PMS) from ₦568 to ₦1,075 in a year is a result of poor policies, mismanagement and alleged corrupt practices. 

    Speaking at a briefing in Abuja, convener Yakubu Dauda said unnecessary charges and taxes have been built into the cost of fuel, intentionally designed to inflate the price of PMS for local consumption.

    Dauda said the NNPCL’s failure to prioritise investments in local refineries and its reliance on imported fuel products have been attributed to vested interests. 

    “The company has failed to address the fundamental issues within the Nigerian petroleum sector.

    “Instead of developing and maintaining local refineries to meet domestic demand, the NNPCL appears more interested in maintaining a system of dependency on imported fuel products,” Dauda stated.

    The coalition called on the government to conduct a comprehensive audit of the NNPCL’s operations, focusing on allegations of corruption and unnecessary charges. It also urged the government to invest in local refineries and end the reliance on imported fuel.

    Dauda believed that transforming Nigeria into a net exporter of refined petroleum products would bring tremendous economic benefits, including job creation, reduced cost of living, and revenue generation for critical sectors.

    The coalition urged Nigerians to demand transparency, accountability, and good governance in the energy sector, stating that the hardship faced by Nigerians is unnecessary and that it is time for the NNPCL and its leadership to be held accountable.

    Read Also: Fuel price: Need for technological awakening

    “Those found responsible for inflating fuel prices and sabotaging local refineries must be held accountable, regardless of their positions of power. Furthermore, we call on the government to urgently invest in Nigeria’s local refineries and put an end to the reliance on imported fuel. 

    “Nigeria has the resources, the manpower, and the expertise to become a net exporter of petroleum products, but this can only happen if we break free from the grip of the corrupt cabals that have hijacked the industry. The continuous importation of fuel is not sustainable, and it is time to take bold steps to ensure that Nigerians benefit from the nation’s oil wealth.

    “The Coalition for Energy Reforms and Good Governance Advocacy urges all Nigerians to stand united in demanding transparency, accountability, and good governance in the energy sector. We cannot continue to tolerate a situation where a few individuals enrich themselves at the expense of the entire nation. The hardship Nigerians are currently facing is unnecessary, and it is high time that the NNPCL and its leadership are held to account,” Dauda stated. 

  • Fuel price: Need for technological awakening

    Fuel price: Need for technological awakening

    • By Yusuf Babatunde

    Sir: At an all-time high of 34.2%, Nigeria’s inflation’s effect on fuel price volatility is one that cannot be overemphasized. But it’s high time we acknowledged that our addiction to fossil fuels is no longer sustainable – especially in a fast-evolving world.

     Although many factors—including the fluctuations in global oil prices have left our fuel prices skyrocketing, but this crisis presents an opportunity for innovation—only if federal government would see beyond the present.

     No progressive country in the world would turn a blind eye to the potential of technology in transforming its mobility landscape and reducing its dependence on fossil fuels. Electric vehicles, alternative fuels, fuel efficiency technologies, mobility-as-a-service, and smart traffic management are no longer futuristic concepts; they’re viable solutions Nigeria, too, needs to start embracing on a large scale.

    When you look at how countries like Norway have strategically transitioned to electric vehicles, how Sweden has pioneered biofuel initiatives, and how Singapore facilitated intelligent transportation systems, then one would realize that these demonstrate that technology can liberate Nigeria too from the shackles of fuel dependency.

    Read Also: We acted to salvage local govt system in Rivers, says Fubara

    So, then, the question arises: what’s holding Nigeria back? Our government’s hesitation to invest in alternative energy sources and transportation infrastructure is staggering. The Innoson CNG buses (some of which are already on the roads in Lagos and Abuja) are worthy of commendations, but it’s just like rotating in a circle. It’s not really the solution. The most effective solution would have been that the 36 state governments and federal government invest heavily in technology and develop a comprehensive national electric vehicle policy. This would undoubtedly reduce the demand for fuel, and as such, the hike in price would fall drastically.

    That fossil fuels pose existential risks to the planet and climate change, is another reason the Nigerian government needs to transit from them and encourage public-private partnerships for mobility-as-a-service and smart transportation systems.

     The benefits to be cupped from this are numerous, some of which are reduced fuel imports and increased foreign exchange savings, improved air quality and public health, enhanced economic productivity and competitiveness, and even, creation of new industries and job opportunities.

    Nigeria’s future depends on our willingness to embrace technological disruption. We must seize this moment to redefine our mobility landscape and secure a sustainable future. Whether we will continue to perpetuate our fossil fuel addiction or will we choose the path of innovation is a choice we need to make for the progress of this country.

    •Yusuf Babatunde,

    Canada.

  • Fuel price will come down if FG deals with manipulators, says Ex-NUPENG scribe

    Fuel price will come down if FG deals with manipulators, says Ex-NUPENG scribe

    Joseph Akinlaja, former Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), has stated that fuel prices would decrease if the federal government addresses manipulators within the sector. 

    Speaking to journalists in Ondo town, Akinlaja cautioned Nigerians not to expect a significant drop in fuel prices, even with the commencement of sales from the Dangote refinery. 

    He attributed the current fuel situation in the country to stakeholders exploiting the opportunity for personal financial gain.

    He said: “The current situation with fuel in the country is a result of mismanagement of our system. It is a shame that we have crude oil and we cannot refine it.

    “There is no way you can control what you import because of foreign exchange and the rates which include the cost of transportation 

    “The way we have floated our naira makes it hard. It is something that got spoilt a long time ago including leadership failure. In other countries without crude oil, they buy fuel at a relatively cheaper rate because of the way they arrange themselves.

    Read Also: Fuel price hike: Ogun okays additional day off for public servants

    “People look for free money in high places. The hardship is uncalled for and unnecessary. The price of fuel will not reduce significantly with the coming of the Dangote refinery but it will come down a little if manipulators within the system can be dealt with by the government.

    “The face-off between the NNPCL and Dangote refinery will soon go off. Everybody is trying to take advantage to make money for themselves. I am positive they will resolve the issues.”

  • Effects of fuel price hike on access, distribution, availability of essential medicines in Nigeria

    Effects of fuel price hike on access, distribution, availability of essential medicines in Nigeria

    Emmanuel Afunwa

    The removal of the subsidy on petroleum products in Nigeria, a major decision made at the beginning of the new government’s administration last year had resulted in an astronomical hike in petrol prices. This had left plenty of businesses groaning and gasping for survival since the recent fuel hike which was one of the actions taken. At his inaugural speech, President Bola Ahmed Tinubu announced that the fuel subsidy which past administrations paid despite its huge impact on the government was gone forever. This action immediately sent signals to the oil marketers that it wasn’t going to be business as usual and fuel shot prices up subsequently.

     This action though seen by the government being one of the reforms agenda as a good option to revamp the ailing refineries and begin local production of petroleum products has adversely affected businesses in Nigeria and the pharmaceutical businesses are not left out, It is making the movement of goods across the country difficult with attendant hike in prices of food items, drugs and household commodities.

    Effects on access to essential medicines

    In its wake, it had led to the high cost of medicines due to the high logistical costs resulting from moving the drugs from one part of the country to another. These increases in transportation costs mean many pharmacies don’t stock some medicines due to high distribution costs which results in their scarcity. One of the major goals of serious nations is to meet the health needs of its citizens and a critical aspect of this is meeting the medicines needs of its people. Nigeria with a mission to achieve the universal healthcare coverage for its citizens there is need for it to assure accessibility to essential medicines. Without access to safe, effective and affordable medicines achieving the universal health coverage is a pipe dream. Access to equal healthcare is a social responsibility of the government to its people and is a fundamental right of the citizens. Central to this is access to essential medicines which is fundamental to the treatment of disease conditions in the entire spectrum of the health system. Inequity in access to essential medicines is a sign of a fragile health system and this characterizes most countries in Africa which are still dependent largely on pharmaceutical imports and poor geographic access to the communities which makes essential medicines unavailable in some of those communities due to high cost of transportation and long distances to be travelled to get their medications.

     Distribution challenges, disruption in supply chains and delays in delivery to remote areas

     A major challenge with getting the drugs to the patients is disruptions in the supply chain and delays in getting to the remote areas where the majority of Nigerians with disease burdens are living. The World Health Organisation, in a study reported that almost 2 billion of the world’s population do not have access to their medications, a major reason is that health care professionals and their facilities due to the better communication links, better opportunities live in urban areas while those with huge disease burdens and who really need the medicines are in the rural and remote areas which are difficult to reach due to supply chain disruptions and delays in accessing those areas. For the current situation in Nigeria high cost of transportation has added to increasing costs and scarcity of some essential medicines. In places where these drugs are available, they are prohibitively expensive and make them out of the reach of common people. This is troubling considering that most patients pay out of pocket for their medicines without any health insurance that could cushion the cost of their medicines. It is bound to lead to poor health outcomes, especially for those patients who are on long-term medications. They are resought to the services of charlatans and quacks who offer all sorts of concoctions for the treatment of all kinds of diseases.

     Stockouts at pharmacies and hospitals: Impact on patient health outcomes

     The non-availability of essential medicines in pharmacies and hospitals has several health implications from any dimension it is viewed. The poor health outcomes for patients who skip their medicines, become non-adherent or abandon the medication regimes they are on due to costs. Studies have shown that the cost of medicines is a major reason why patients may stop taking their medications and this often leads to poor health outcomes or in worse cases could result in the hospitalisation of the patients or even death. All these may affect families and make them poorer. A breadwinner who is hospitalized for many days may leave the family vulnerable and set them on the path to poverty. It is with this social lens that serious governments should view the implications of their actions on the citizens.

     Mitigating strategies: Government interventions to support healthcare infrastructure

     There is a need for the government to seriously look at ways to mitigate the pains the fuel hike is causing patients, particularly concerning their medicines which are becoming more expensive due to the fuel hike and the attendant cost of distribution. A government which is serious with matters about health should be a major of its policies laid out to favour the health needs of its people. In this care the teeming patients in our hospital looking for succour on how to buy their medicines. The government can offer some incentives for courtiers companies, transportation companies, pharmaceutical companies to ease the cost of moving medicines across the  supply chain.

    In conclusion, there are no doubts that the subsidy removal and the fuel price hike have contributed in some ways to the pains patients on various medications are going through but the government can intervene proactively by cushioning the costs of transportation of these medicines so that life is more bearable for the patients and reduction in the attendant health care costs and the public health problems that may emanate from not attending to these problems.

    Afunwa, a pharmacist and pharmaceutical policy analyst, writes via emmafunwa1@gmail.com

  • Senate promises to intervene in further fuel price, electricity tariff hikes

    Senate promises to intervene in further fuel price, electricity tariff hikes

    The Senate has said it is performing necessary oversight functions to stop further hikes in petroleum pump price and electricity tariff.

    The Upper Chamber said it would also not allow the falling naira value against major world currencies to have worse adverse effects on the citizens.

    The Chairman of the Senate Committee on Media and Public Affairs, Yemi Adaramodu, gave the assurance while addressing reporters in Abuja.

    Asked what the Senate was doing to allay the current fears over possible hikes in electricity tariff and the pump price of petroleum products as a result of high landing cost of the products and indebtedness of the Federal Government to the electricity generating firms (GenCos), he said: “The Senate would do everything possible to ensure that Nigerians do not pay through their nose to enjoy electricity and petrol.”

    Last week, Power Minister Adebayo Adelabu said Nigeria was not likely to sustain the current electricity subsidy.

    Read Also; Wike, Akpabio to Nigerians: Tinubu’s policies only way out to address years of economic rot

    The minister explained that the indebtedness of the country’s power sector to electricity-generating companies (GenCos) and gas companies (GasCos) had risen to over N3 trillion.

    Reports had also shown that due to the prevailing black market rate of about N1,600 per dollar, the landing cost of petrol had soared to about N1,009 per litre, marking a substantial increase from N720 per litre recorded last October.

    Adaramodu said: “The issue of petroleum matter and that of power, especially the two; one: if you can just recall, the Senate, especially, has instituted a committee probe into the activities of the Nigerian National Petroleum Corporation Limited (NNPCL) and even the oil sector generally. We are awaiting the reports.

    “The reports will determine our own approach to what we are going to advise or what we are going to compel the Executive to do about this issue.

    “On the issue of power, a minister can come out and say whatever he would like to say, which is as it applies to his ministry. But the minister is not the last voice on such issues.

    “The Presidency is there and, even in our own side, we have a committee solely responsible for power matters.

    “Appropriately, those committees will swing into action and they will brief the Senate accordingly. From their briefings, we would take a position.”

    The Senate spokesman insisted that the Red Chamber would intervene appropriately on the planned strike by the Nigeria Labour Congress (NLC).

    He said: “On the issue of NLC strike, we learnt that the Federal Government has been meeting with them. Yes, there’s an analogy, which I want to draw.

    “When a child is crying for food and the father is going up and down to ensure that food is provided for the child, if the child cries too much, by the time the food comes, the child will be too weak to eat the food. So, it’s an analogy, and I’m very sure that is what is taking place now.

    “On the NLC meeting with the Federal Government: they will reach an agreement and whatever agreement they reach, we expect that it will be expeditiously adhered to.”

  • No plans to increase fuel price, says FG

    The Federal Government has no plans to increase the pump price of petrol, the Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu, has said, adding that the queues at filling stations was not as a result of shortage in supply of fuel but as a result of logistics issues.

    Kachikwu in an interaction with reporters on Monday in Lagos at the ongoing two-day and second edition of the Annual International Conference and Exhibition of the Oil and Gas Trainers Association of Nigeria (OGTAN), urged the public to ignore rumours of planned upward review of pump price of petrol.

    ”As far as I’m concerned, there is no discussion within government circle about petrol price review and wondered how the rumour began and impatient motorists didn’t interrogate the speculation and gossip,” he began.

    “I took time to go round some stations in Lagos and I discovered that the queues which resurfaced has disappeared and let me tell you the issue of petrol pricing is a sensitive thing, you can see how the oil unions quickly reacted to the rumour and again the government is sensitive and engages stakeholders in every decision or policy it makes. Therefore, this spontaneous reaction and resurfacing of queues despite assurances by the Nigerian National Petroleum Corporation (NNPC) is worrisome,” Kachikwu said.

    He said he has confidence in the management of the NNPC and its capabilities to maintain and meet the supply needs of the country and the logistics gap which prompted the unnecessary panic has been resolved.

    But again no system is perfect, sometimes you have some of these things happen but as a responsive and responsible government, alternative arrangements are always in place such that any gap is taken care of not to allow the situation to escalate, he added.

    The Group General Manager, National Petroleum Investment Management Services (NAPIMS), and arm of NNPC, Mr. Roland Ewubare, who represented the Group Managing Director of the NNPC, Dr. Maikanti Baru, at the event, noted that about 15 ships with fuel arrived at the ports but had discharge challenges especially at Warri port, but the situation has been resolved.

    Ewubare confirmed that even with the challenges, the NNPC has about one billion litres of petrol which is about e 28 days stock, assuring that the nation will not experience scarcity of any sort again.

    In his goodwill message, Kachikwu challenged industry operators and stakeholders to take the issue of human capital development very seriously as Nigeria currently lags behind in developing local capacity in the oil and gas industry.

    He expressed worries that the country has spent so much time dealing with issues around the sector but without tangible success stories to tell.

    “I want to ask, in human capital development, how can we start building Floating Production Storage and Offloading vessels (FPSOs), develop modules to transfer to the sub-region.

    ”When shall we allow market philosophy to drive the market with government providing enabling environment through adequate policies?

    “When shall we begin to install our pipelines, build power plants, build our own refineries using in-country resources and attract private sector funding of projects and save government the scarce resources?” he asked.

  • No plan to increase fuel price – Senate

    No plan to increase fuel price – Senate

    •NUPENG warns against proposed N5 petrol levy

    The Senate has denied that it plans to increase Premium Motor Spirit (PMS) price from N145 to N150.

    The clarification, contained in a statement by the Senate spokesperson, Mr. Bamikole Omishore, followed the massive public condemnation trailing the proposal.

    This is coming as the National Union of Petroleum and Natural Gas Workers (NUPENG) yesterday criticised the proposed N5 petrol levy suggested by the Senate, describing it as a huge joke.

    Alhaji Tokunbo Korodo, the South-West Chairman of NUPENG, said in Lagos that the proposal was ill-timed and also smacked of insensitivity to the current economic hardships facing Nigerians.

    He wondered how the nation’s Upper Chamber could think of another fuel price increase when Nigerians were “striving to cope with the current harsh economic realities.”

    “How can the Senate propose such a bill at this particular period when poor Nigerians can hardly feed themselves?

    “The prices of foodstuffs have tripled in the market, while workers’ salary has not been increased,” Korodo said.

    Sen. Kabiru Gaya (APC-Kano), the Chairman, Senate Committee on Works, had on June 1, presented a bill entitled, “National Roads Bill” to the House.

    The bill recommends that Nigerians should pay N5 levy on every litre of imported petroleum products and that levy will form part of the proposed national roads fund.

    It also recommends the deduction of 0.5 per cent on fares paid by passengers travelling on inter-state roads to commercial mass transit operators as well as the return of toll gates on federal roads, among others.

    Korodo said: “Just a year ago, the pump price of petrol was increased from N87 to N145 per litre and Nigerians accepted the increment because of the sincerity of President Muhammadu Buhari’s administration.

    “Any attempt to adjust the price of petrol under any guise will be resisted by Organised Labour.”

    The NUPENG chief called on well-meaning Nigerians to prevail on the leadership of the Senate to step down the bill.

    The Senate spokesperson, Mr. Bamikole Omishore,  in a statement clarifying the stand of the Senate, said: “At the public hearing on the National Roads Fund Bill the stakeholders were unanimous on the need to access a percentage of the funds for the sustainable maintenance of roads from the pricing template of petroleum products.

    “While the unanimity was on a percentage, opinion varied as to what percentage. Some argued for 25%, 11%, 7% and 5% of the value of the price of the product.

    “This position was held strongly since most other African countries have actually implemented an average of N25 surcharge on petroleum products for the maintenance of their roads.

    “It was the widely-held view that we may not be able to go that far in view of the economic challenges the country was going through and the need to ameliorate the suffering of the ordinary Nigerian.

    “The technical committee in reviewing this submission determined that even at a surcharge of 5% which leaves the value at about N11 (at the current price of PMS) will be untenable.

    “Not only due to implementation challenge that would have required that at all times, the surcharge will mean an addition burden is placed on Nigerians beyond the cost of the petroleum product.

    “Rather it was agreed that the charge be pegged at N5 and implemented within the existing charges template rather than a calculation arrived at in addition to the price of the product.”

    He added that the charge is to be accommodated within the pricing charge template in effect within the PPPRA and that it was to ensure that our roads can come back to life.