- Mixed reactions yesterday trailed the increase in the pump price of petrol, report Muyiwa Lucas, Simon Utebor, Bassey Anthony and Udeh Onyebuchi
Price hike unavoidable, say stakeholders
Industry experts have acknowledged that the petrol price hike is unavoidable.
An oil and gas consultant, Henry Adigun explained that aligning market prices with international product prices is crucial for resolving the subsidy issue.
He welcomed the Dangote Refinery’s commencement of petrol production but noted that its impact will depend on market conditions.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, highlighted the anticipated positive effect of Dangote Refinery on product availability.
“I anticipate that Dangote will increase the supply of petrol and automatic gasoline oil in the Nigerian market,” Chinedu said.
Dr. Ayodele Oni of Bloomfield Law Practice described the price increase as reflective of market realities but questioned whether it sufficiently covers costs and provides a margin. He called for a market-driven approach while cautioning that prices might not decrease significantly.
NECA kicks
The Nigeria Employers Consultative Association (NECA) has condemned the new pump price of ₦897 per litre (in Abuja) . It called the development worrisome and unfair.
NECA’s Director-General, Adewale-Smatt Oyerinde, criticised the government for not leveraging the completion of the Dangote Refinery to reduce petrol prices.
He argued that the new price exacerbates the financial burden on Nigerians and reflects inefficiencies within the NNPCL.
Oyerinde urged the government to address the underlying issues and reconsider its approach to prevent economic strain on businesses and individuals.
“We advise that government should have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses,” he stated.
FCT motorists, commuters, others express frustration
The frustration is palpable in the Federal Capital Territory(FCT). Motorists and commuters have been hit hard by the sudden price hike, which comes amid persistent fuel scarcity.
A businessman, Alhaji Abdulaziz Isah expressed his dismay, saying: “The removal of the fuel subsidy with no proper plans in place has crippled the oil and gas sector and the economy at large. The dollar keeps rising, making it difficult for importers and marketers to buy petrol. If the government cannot implement a lasting policy, they should consider reinstating the subsidy, as citizens are suffering immensely.”
The ripple effects of this price hike are evident in the daily struggles of civil servants like Mr. Aloze Ojo, who has been battling long queues at filling stations, often to no avail. “The hardship is unbearable,” Ojo lamented. “At times, I can’t even afford transportation to work, and feeding my family has become an even bigger challenge.”
The situation is equally dire for commercial drivers. A taxi driver, Olusegun Ade, described the difficulties of balancing high fuel costs with affordable fares for passengers.
“I’m running at a loss. I buy petrol at an exorbitant price, but if I increase fares, some passengers won’t be able to afford it. My family depends on my daily earnings, and with this latest increase, I don’t know how we’ll survive. I’m pleading with the president to act swiftly; the suffering is too much.´ Ade said.
The crisis has also highlighted the urgent need for alternative energy sources. A retired civil servant, Mrs. Rita Uka, urged the government to expedite action on its Compressed Natural Gas (CNG) project.
“Over-reliance on PMS is making it a scarce and costly product. If CNG becomes widely available and affordable, it could help alleviate the pressure on PMS and stabilize the economy.” she said.
Calabar struggling with scarcity, high price
Residents of Calabar, the Cross River State capital are grappling with both the scarcity and high cost of petrol, with prices ranging between ₦880 and ₦950 per litre. The situation led to long queues at the few stations still selling fuel, with some motorists arriving as early as 3:00 a.m. to secure a spot.
A motorist, Johnson Effiong, recounted his frustration at a station that received a fuel supply but failed to commence sales.
“We saw petrol being discharged on Monday, so I came here at 3:00 a.m. to queue up, but they still haven’t started selling. The pump attendants are here, but we don’t know why they’re not dispensing the product. he said.
The uncertainty and inconsistency in fuel availability have left many residents feeling helpless. Another motorist, Daniel Uwem voiced his concerns about the difficulty of obtaining petrol despite its high cost.
“It’s hard to know what to complain about anymore. Even when stations have fuel, they only sell for a few hours before claiming the product is finished.” Uwem said.
The scarcity has also taken a toll on commercial drivers. Mr. Matthew Archibong, a mini-bus driver, described the challenges he faces daily. “I spent several hours at a filling station along Murtala Muhammed Highway before the manager announced that they wouldn’t be selling fuel. I had to leave and queue up at another station, only to find that they were also not selling.
‘New petrol price may put marketers in debts’
Independent petroleum marketers who paid for supply of the commodity in June but are yet to be supplied, yesterday expressed regrets with the NNPCL’s decision to increase the pump price of petrol without consideration for their business interest, it was learnt yesterday.
An independent marketer in Mushin, Lagos State, who pleaded anonymity, explained that “we independent marketers paid on NNPCL portal since June 3 and 4 for petrol supply when the portal was opened. After two weeks the portal was closed; about 3,000 marketers paid. What we paid for was 45, 000 litres of petrol each valued at N25, 042, 651. 25k. Majority of us that paid in June didn’t get petrol to lift, we were programmed to start lifting last month in bits.
“Now this is September and still majority of us have not been given our product and then this increase. NNPCL is now saying that we have to pay at the new rate which is about N11 million difference because at the new rate, a 45,000 petrol tanker will now cost over N36 million to lift.
“A lot of marketers are now in a dilemma because of this development because we obtained loans from banks to run this business and the loans have accumulated interest over the months. The new price has now completely rubbished our investments made since June when we paid.
“The government or NNPCL didn’t consider us at all. Previously, we used to buy this same quantity at N7m before May 2023, and it subsequently jumped to N25 million now its N36 million. How do they want us to survive? Government should instruct NNPCL to sell to us at the previous rate because we paid for the product at that rate and not being able to get our supplies at that time is not our fault. We marketers are just trying to balance and now see the increase; government should be considerate and let us buy at the rate we paid for.
“NNPCL does not reckon with us; they should have notified us before the increase or at least given us our product at the rate we paid for.
‘’NNPCL has not been fair to us because we are not credit marketers; we pay upfront and they use our money to trade. When there is petrol, instead of NNPCL trucking us, they give priority to the bridgers who takes the product up north, whose trucks have capacity for 50, 000 litres; they load them 1,000 trucks or more without loading us.
“The price increase will mean that more marketers may not be in a position to continue trading because a lot of us are indebted already with mounting interests on loans. The only help they can give us now is that they should load us at the old rate, “ the source said.
Uyo, Yenagoa residents lament
Fuel prices in Uyo, the Akwa Ibom State capital have skyrocketed to ₦970 per litre, with the NNPC mega station selling at ₦887 per litre. Despite the lack of scarcity in the state, many filling stations remain closed.
A commercial driver in Uyo, Aniekan Ukpongette spoke about his experience. He said he joined a queue at 4:18 a.m. yesterday and as of 3:00 pm he was still on the queue.
“I’ve been here for hours, and I’m nowhere near the dispensing point. This situation is unbearable.” Ukpongette said.
In Yenagoa, the capital of Bayelsa State, the fuel crisis has been ongoing even before the new price adjustment. Petrol has been selling for between ₦900 and ₦1,000 per litre at most filling stations, with black marketers taking advantage of the situation by selling at even higher rates.
Our fears, by Lagos traders, commuters, others
Lagos, the nation’s commercial nerve centre, was not spared of the fallout of the fuel price hike. The state has witnessed a surge in petrol prices, with some stations selling for over ₦850 per litre and others exceeding ₦1,100. This increase has sparked widespread concerns among residents, who fear that the rising cost of fuel will escalate the cost of living.
A trader, Sarah Johnson expressed her fears about the impact of the price hike on the market.
“This increase will drive up the cost of essential commodities that were just beginning to stabilise. Transportation costs will rise, making it more difficult for consumers to afford basic goods.” Johnson said.
A commuter, Michael Oladipo echoed these concerns, noting that the higher fuel prices would likely lead to an increase in transportation fares and, consequently, the prices of goods and services.
“This will only worsen the financial burden on families who are already struggling to make ends meet,” Oladipo said.
A woman, Grace Eze lamented that the situation has also affected household budgets.
“I noticed today that traders are already planning to raise their prices due to the fuel increase. My family relies on my spouse’s income alone, and this price hike will place additional strain on our budget.”
A bus driver, James Obi suggested that the high prices might discourage hoarding and stabilise the supply chain.
He said: The high price might eliminate long queues at fuel stations,” Obi suggested. “But it’s still a difficult situation for many of us.”
Ebonyi residents reject increase
Residents of Ebonyi have lamented the increasing price of petrol which they said is worsening the hardship in the country.
They also lamented the hardship they face at NNPC fuel stations where it is sold at cheaper rates to get the product.
A civil servant, Ikechukwu Eze good our reporter that he spent over four hours on queue at the station on one occasion which led to his reporting late to work.
“I was queried for lateness by my boss all because I wanted to buy fuel at a cheaper rate. It is a mistake I am never going to make again. I will rather buy at higher rate at other filling stations or take public transport to work”, he said.
A trader, Mr Odono Peter regretted that he was forced to spend hours at the queue which made him open his shop late in the afternoon.
“My business suffered because I opened shop late around 12 noon because I was queueing up to but fuel.
“Customers were calling me to come and sell to them but after waiting for sometime they bought form other sellers and left.”, he said.
Be prepared for market price, PETROAN warns
President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harry has urged Nigerians to prepare for a higher price of Premium Motor Spirit (PMS) in days to come, saying that prices would henceforth be sold at the current market prices.
Gilly-Harry made this known yesterday while speaking as a guest on Channels Television’s Morning Brief.
According to him, current prices of petrol at around ₦600 per litre may no longer be possible, as the Nigerian National Petroleum Company Limited battles to keep the country wet with products.
His stance comes as the NNPCL recently agreed to be in debt of over $60billion to PMS suppliers.
Petrol currently sells for around ₦950 and above ₦1000 per litre in filling stations not owned by the NNPCL due to the scarcity.
“We have been shouting that they (NNPC) have been selling products at ₦590 per litre. Who is bleeding? Somebody is bleeding and we need to tell what exactly is going on, we cannot play politics with everything.
When asked whether Nigerians should prepare for a price hike, he said “For me, what I will say is to encourage Nigerians to buy petroleum products at the price that the market forces will determine. However, we are fully aware that fuel subsidies of different kinds of products across the world, and oil and gas are a natural blessing for Nigerians. And naturally, we are expecting a subsidy to be paid for that. And I will have to look at the advantages of subsidising just PMS when we have health challenges and other challenges.
He also spoke on the NNPCL debt to oil suppliers.
“It is a great effort by the NNPC to come out to say it is in debt. And this is what we have advised a very long time ago, that anything that needs to be done in this sector should be done transparently so that people don’t guess and get into panic.
“For us as retail outlet owners, it is a situation that has given us a concern to also look inwards and see what dialogues can bring.
“Three days ago now, there is information that we should look for other solutions out of the box.
“So it is going to be a tough one. NNPCL is the only one that has access to expendable amounts of dollars to import PMS or any other product at this time, because they have a ready market, and they also earn in dollars, given that our refineries are yet to come on stream.
“It definitely means that we have to think out of the box and become creative in certain ways that will help us to be able to serve Nigerians.
“For my members, we have suffered a great deal. You see our filling stations across the country, but there is no business. So it is a concern for all of us but we all can think out of the box and come out with a solution to the crisis.
“Recall that when the deregulation regime started in 2023, some members who had access to forex were also importing. And of course, the reason they stopped was because you cannot land products within the rate of $1 per litre, and try to sell it for 30/40n cents.
“So there could be business arrangements with refineries and owners of trading companies that could also come to the rescue.
“Nigerians are creative and I know a lot of Nigerians are already working. PETROAN is also putting together a couple of ideas that will aggregate funds, and see how that in itself can become a solution.
“So yes, NNPC has the capacity, and incidentally we are here and we hope that we can hurriedly walk this road and get out of it. Yes, I agree that when information is given, it should be brutally honest so that we know exactly where we stand. PETROAN and other sister organisations with bigger capacities are also doing the same thing.
“There are so many things that Nigerians can do exactly to get tradable dollars which we have left.”
