The Nigerian National Petroleum Company Limited (NNPC Ltd) has on Wednesday, October 9, 2024, increased the price of Premium Motor Spirit (PMS) to at least between N988 to N1,075 depending on the location.
This hike follows the termination of NNPC’s exclusive purchase agreement with Dangote Refinery, which previously allowed NNPC to be the sole off-taker for petrol.
This development means that in just 18 months of President Bola Tinubu administration, the price of petrol in Nigeria has jumped from N198 to N1,030.
How fuel price increased from N198 to N1030 in 18 months under Tinubu Regime
In his inaugural address at Eagle Square, Abuja, Tinubu exclaimed “Subsidy is gone”, resulting in an instant increase in fuel price from N198 to N540 at NNPC outlets.
According to the president, fuel subsidy had become a clog in the wheel of progress and needed to give way for the country to survive. Tinubu, who said subsidy was fueling corruption, vowed to pump the money saved from it into others aspects of the economy.
“You have paid attention to the subsidy removal. Why should we in good heart and sense, feed smugglers and be Father Christmas to neighbouring countries, even though they say not every day is Christmas? The elephant that was going to bring Nigeria to its knees is the subsidy. A country that cannot pay salaries and we say we have potential to encourage ourselves. I think we did the right thing,” Tinubu had told some monarch who visited him at Aso Rock a month after subsidy removal.
On July 18, 2023, the pump price at NNPCL outlets rose from N540 to N617 per litre. This was when Nigerians were still trying to adjust the cost of living crisis occasioned by the increment.
The Group Chief Executive Officer of NNPCL, Mele Kyari, had attributed the rise in pump prices to market forces. According to him, the hike reflected the dynamics of a market-regulated pricing model.
Addressing journalists after a closed-door meeting with Vice President Kashim Shettima at the State House, Abuja, Kyari said, “They are just prices depending on the market realities. This is the meaning of making sure that the market regulates itself. Prices will go up and sometimes they will come down also.”
He debunked notions that the price increase is due to a shortfall in petrol supply.
Amid protracted fuel queues, NNPCL attributed fuel shortage to supply disruptions caused by outstanding debt obligations to international oil traders.
The corporation did not disclose the exact amount owed to oil traders, but reports said the debt was to the tune of $6.8 billion.
Before acknowledging being indebted, the oil firm had repeatedly told Nigerians that things were under control. However, the queue worsened and prices were inflated.
In a statement on September 1, 2024, Olufemi Soneye, NNPC spokesperson, said the corporation’s ability to sustain fuel supply was under threat.
On September 3, 2024 NNPCL increased hiked pump price from N617 per litre to N897 per litre, an increase of over 45 percent.
Addressing members of Nigerians in Diaspora Organization in China (NIDO China) and the Nigerian community at the China World Hotel, Tinubu had described the increment as one of the unprecedented steps aimed at reforming the country.
According to him: “Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices. But, can we help it? Can we develop good roads like you have here? You see electricity being constant in quantity and quality.
“You see water supply, constant and running, and you see their good schools. And we say we want to hand over a banner without stain to our children? What is the critical part to get us there if we cannot take hard decisions to pave the way for a country that is blessed and so talented?
In September, the NNPC stated that it was purchasing petrol from Dangote Refinery at N898.78 per liter and selling it to marketers at N765.99 per liter, effectively absorbing a subsidy of nearly N133 per liter.
However, the company indicated that this arrangement is no longer sustainable.
Between September 15 and 30, the NNPC lifted approximately 103 million liters of petrol from Dangote Refinery. During this period, the refinery managed to load 2,207 of the 3,621 trucks sent to it.
On Tuesday, October 8, 2024, it was reported that NNPCL exited as a middleman in the Dangote Refinery fuel purchase deal.
Marketers can now negotiate petrol prices directly under a “willing buyer, willing seller” arrangement, aligning with practices for other deregulated products such as diesel and kerosene.
Barely 24 hours after the report, NNPC increased the price of petrol from N898 to N1,030 per litre.
What Nigerians are saying
The recent increase in fuel prices has sparked outrage among Nigerians, with many lamenting, “Na citizens go suffer am.”
An X user, Taiwo Ogundari said; ”Na citizens go suffer am”
Another user, Seun Olawoyin said; ” Praise the Lord!!! Una never see anything… We are still going to 2000/litre.Sebi when we talk una say, it will favour me and my family.”
@Sthabbey: “This situation is becoming unacceptable. Nigerians deserve respect from @officialABAT and his administration. This is unwarranted, and our patience has been stretched to its limit.”
@qudus_kalas: “At this point they should just throw atomic bomb 💣 in the country make every body kuku kpai once and for all”
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