Petrol price up third time in 60 days as crude price drops
The Nigerian National Petroleum Company Limited, NNPCL, yesterday, adjusted the price of Premium Motor Spirit, PMS, also known as petrol, to N1,025 per litre, from N998 per litre, in Lagos and environs.
Similarly, in Abuja, the price of the product rose to N1,060 from N1,030, in what has become the third increase in the price of the product in two months.
The latest increase came as the price of Nigeria’s Bonny Light crude dropped to $72 per barrel, from $75 per barrel, indicating a shortfall of 8.2 per cent against the $77.96 per barrel reference price of the 2024 budget.
In Lagos, filling stations immediately adjusted their prices to reflect the new rate, while motorists were seen rushing to some outlets yet to adjust prices to buy the product
NNPCL had earlier this month, hiked pump prices from N897 per litre to N1,030 per litre following the deregulation of petrol pricing by the Federal Government.
Checks around the central area of Abuja on Tuesday night showed that most major marketers which had opened during the day, shut their gates as they began the process of adjusting their metres.
However, Ardova Plc station, independent marketers, located opposite NNPC Retail mega station continued to sell to motorists at the old price of N1,125 per litre.
Spokesman of the NNPCL, Olufemi Soneye, could not be reached for comments last night but checks by Vanguard indicated that the price adjustment was based on market forces, following the deregulation of the downstream sector.
An industry source, who pleaded to be anonymous, said: “This is the third adjustment to be made in September and October 2024, based on deregulation.
‘’The policy enables price to be adjusted based on the forces of demand and supply. The weakness of the naira, currently standing at N1,664/$ may also be a factor.”
Experts react
Reacting to the development yesterday, the CEO, Centre for the Promotion of Private Enterprises, CPPE, Dr. Muda Yusuf, said; “The decision may be driven by deregulation. They should also think about other considerations, especially now that Nigerians are suffering.
‘’It would be necessary for the government to adopt social approaches to enable it to reduce the sufferings of citizens.
“Indeed, Nigerians are passing through very difficult times and they need measures to be put in place to reduce their pains.”
However, a major oil marketer, who pleaded to be anonymous, said: “Currently, the price of petrol has been deregulated. It can rise now but it should also reduce in the coming weeks since crude oil prices have dropped significantly in the global market.
“The NNPCL and other operators in the downstream value chain have embraced deregulation and it is expected that low crude oil prices would reflect in petrol prices.
“The appeal will then be for the government to reduce their operational cost and possibly grant incentives to the Small and Medium Scale Enterprises, SMEs, which are mostly affected by the upsurge.”
Revolt against petrol pump increases, CSO urges Nigerians
Reacting to the latest hike in the petrol pump price by the Nigerian National Petroleum Company, NNPC, a member of the Joint Action Front, JAF, the Movement for a Socialist Alternative, MSA, called on Nigerians, especially workers, to revolt against the endless increase in the pump price of petrol the federal government.
JAF is the umbrella body for pro-workers civil society organization
MSA in a statement by its General Secretary, Dagga Tolar, said: “In a troubling and relentless trend, the Nigerian National Petroleum Company, NNPC, Limited has again raised the price of petrol, this time crossing to N1,025 mark per litre.
“This increase comes barely two weeks after Nigerians expressed outrage over the staggering 430% hike in petrol prices since President Tinubu assumed office. The recent adjustments not only deepened the financial strain on Nigerian households but also highlighted the government’s disregard for the harsh realities facing the working masses.
“We, in the Movement for a Socialist Alternative, MSA, firmly condemn this incessant increase in petrol prices, which serves as another aggressive attack on the government’s ongoing neoliberal agenda.
‘’This pattern of price hikes has led to unbearable living conditions, pushing majority of Nigerians further into poverty, while corporate interests continue to profit.
“The Nigerian Labour Congress, NLC, and the Trade Union Congress, TUC, must stand resolute and no longer remain silent while workers are forced into deeper economic hardship. It is imperative that they take immediate, unified action to protect the Nigerian people from these exploitative policies.
“We call on Nigerian working masses to come together and oppose this unrestrained attack on their livelihoods. Now, more than ever, a united front is necessary to challenge these policies that consistently favour profit over people.
“The MSA stands in solidarity with every Nigerian worker and citizen who seeks a just, equitable, and accessible economy. Together, we must demand an end to this cycle of price hikes and call for policies that genuinely prioritize the well-being of the people.”
Independent marketers sell higher
Vanguard gathered yesterday that independent marketers are also warming up to mark up prices, as they had always taken a cue from NNPCL.
Findings yesterday revealed that some of them were already selling the product for as high as N1,150 to N1,200 per litre.
Tinubu urges stakeholders in oil industry to stop reliance on importation
Meanwhile, President Bola Tinubu yesterday in Abuja urged stakeholders in the oil and gas industry to look inward and consider supplying enough petrol and petroleum products for local consumption to stop the persistent reliance on importation.
He said this will enable the channelling of foreign exchange into the development of the real sector.
The President also commended the implementation committee on naira-based sales of crude oil and refined products and asked the members to resolve any teething problem that might arise.
In a review meeting at the State House, the President said using the naira was conceived to remove the exchange rate hurdle.
“Whatever solution we proffer in crude oil and refined products sales in naira should not take us back to our experience in the last 40 years.
“There can be cost and revenue adjustment in the oil sector, but the issue is that the government will not have to go back to the old ways of doing things,” the President stated.
He said the players in the oil sector, including the NNPCL and the Dangote Refinery, should work to improve the economy and the livelihood of Nigerians.
The president advised stakeholders to use Afreximbank as a settlement bank to resolve the naira pricing for crude and refined products.
Afreximbank is already on board as the financial adviser.
“The market must determine what we are doing. Once you allow the market to determine the profit and loss, independent marketers and the government side can meet on the worksheet. I want the issues resolved without future waste of time.
“We can have energy security, and the motivation for Alhaji Aliko Dangote will not be defeated. It will be more predictable on a medium and long-term basis,” the President said.
In his remarks, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the administration’s ground-breaking steps to sell crude in naira would not be reversed, adding that government will not be involved in determining the rate of exchange for the oil sector.
On his part, the President/CEO of Dangote Group, Alhaji Aliko Dangote, told the President that the refinery has more than 500 million litres of fuel in reserve, after supplying 400 million to the economy.
He said the refinery can collaborate with other refineries managed by NNPC Ltd to meet an estimated 32 million litres of local petrol needs.
At the meeting, the Federal Inland Revenue Service Chairman, Zach Adedeji, who chairs the technical committee, said importing refined products should end once the country developed the capacity to produce enough to meet domestic needs.
“The vision of Mr President is to turn Nigeria into a hub for refined products to export to the world,’’ he stressed.
Other stakeholders at the meeting included the President and Chairman of the Board of Afrexim Bank, Prof. Benedict Oramah; Minister of Budget & National Planning, Sen. Abubakar Atiku Bagudu, the and Group Managing Director of NNPC Limited, Mele Kyari.
The president’s Special Adviser on Energy, Olu Verheijen, and the CEOs of NIMASA and Nigerian Ports Authority, NPA, also attended the meeting, along with Engineer Gbenga Komolafe, head of Upstream Regulator, and Farouk Ahmed, head of Midstream and Downstream Regulator, NMDPRA.
[Vanguard]
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