Nigerians are reeling from yet another shocking increase in fuel prices, with the Nigerian National Petroleum Company Limited (NNPCL) raising Premium Motor Spirit (PMS) prices to between N1,030 and N1,200 per liter. This new hike comes after a similar rise occurred just weeks prior, following the commencement of fuel distribution by the Dangote Refinery on September 15, 2024.
At NNPCL retail outlets, fuel prices have surged from N855 and N897 to N998 and N1,030 in Lagos and Abuja respectively. In Enugu, prices have risen even higher, reaching N1,200 to N1,300 per liter.
This is the second significant price hike since Dangote Refinery began fuel distribution, with the refinery initially starting at N898 per liter on September 15, 2024. Sources suggest that full deregulation, coupled with market forces, has led to the upward adjustments seen in recent weeks, pushing prices up from N557 and N617 to N1,030 at NNPCL stations.
The decision by NNPCL to increase fuel prices has caused widespread concern, with many Nigerians already grappling with rising inflation and economic hardship. Market watchers note that despite the Nigerian government confirming a Naira-for-crude agreement with Dangote Refinery on October 1, this has yet to bring the price relief many hoped for.
Reacting to the development, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), suggested that the Nigerian government may be following the advice of Dangote Group President, Aliko Dangote, who had called for the complete removal of fuel subsidies. Gillis-Harry also acknowledged the volatility of the market, where prices may continue to fluctuate.
On the other hand, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association, attributed the hike to the impact of deregulation, arguing that the fuel market is still too unstable for such a move.
Meanwhile, major labor and industry groups, including the Nigerian Labour Congress (NLC), Centre for the Promotion of Private Enterprise (CPPE), and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), have condemned the hike, calling for an immediate reversal. NLC President Joe Ajaero stressed that the increase would only exacerbate poverty and economic woes, while CPPE Director Muda Yusuf argued that Nigeria is not yet ready for full deregulation.
As Nigerians struggle with inflation rates of 32.15% (headline) and 37.52% (food), the latest fuel price increase is expected to further elevate the cost of goods and services across the country.
