*Energy consumers, industry analysts, and other stakeholders react to latest development, as the Nigerian National Petroleum Company Limited, again, has adjusted the pump price of the Premium Motor Spirit, also called petrol from previous N1,030 to N1,060 per litre in the country

Isola Moses | 绿帽献妻

The deregulation of the downstream petroleum sector is taking full effect in the economy already, as the Nigerian National Petroleum Company Limited (NNPCL) Tuesday, October 29, 2024, again, adjusted the pump price of the commodity from previous N1,030 to N1,060 per litre.

绿帽献妻 reports energy consumers are taken aback by the latest price hike as oil marketers foresee further price hikes in the short term, barely three weeks after the state oil company raised the price of Premium Motor Spirit (PMS), as also known as petrol.

Malam Mele Kyari, Group CEO of NNPC Limited (l) and Alhaji ALiko Dangote, Presideent/CE of Dangote Group

The retail price of petrol across multiple NNPCL stations, as of Tuesday, in Abuja, FCT, was N1,060, according to report.

However, in Lagos, report indicated that NNPCL stations increased the unit price of the commodity from N998 to N1,025 per litre.

The price increment again, has聽 received widespread criticisms from the Organised Private Sector (OPS), Civil Society Organisations (CSOs), and Nigerian energy consumers in general.

Since the 鈥渟ubsidy is gone鈥� presidential declaration May 2023, the NNPCL has gradually increased the pump prices of petrol from N184, in Lagos, to cutrent N1,025, according to reports.

Yet, it is observed there has not been any official statement from the NNPCL on the latest increase in petrol price in especially Abuja and Lagos aside from other parts of the country.

Experts and key watchers of events in the Nigerian oil and gas industry, nonetheless, fear high inflation in the West African country may worsen, following the latest hike.

The inflationary trend June 2024 had聽 hit a 28-year high (34.2 percent), the development which some opined might compound the current economic hardship in Nigeria.

On fuel (PMS) price hikes

The new petrol price, in Abuja, is an increase of N30 from the old price, while in Lagos it is an increase of N27.

The NNPCL latest price adjustment also marked the third price change between September and October this year, and it is part of the government鈥檚 deregulation policy, which allows prices to fluctuate based on supply and demand dynamics.

At its mega station located along Wuse Zone 4, the price of the commodity was sold at N1,060 per litre Tuesday, report said.

However, at the company’s retail station located along Olusegun Obasanjo Way, Central Area, in Abuja, the petroleum product still sold at N1,030 with commuters scrambling to join the long queue, The Punch report said.

The fresh increase followed the October 9, 2024 hike from N897 to N1,030.

It is recalled the NNPCL September 2, 2024, had hiked the price per litre of petrol from N617 to N897, sparking nationwide outrage.

Dangote speaks on ‘continued fuel importation’

Since Dangote Petroleum Refinery and Petrochemicals Company Limited commended oil refining, the company, at various fora, has faulted the NNPCL and oil marketers’ continued importation of petroleum products despite the fact that the commodity is being produced by the $20bn Lekki-based oil refining facility.

Dangote, Africa鈥檚 leading industrialist, December 2023, commenced operations at his $20bn oil-refining plant sited at Ibeju-Lekki, Lagos State, with 350,000 barrels per day (bpd) of the overall 650,000 bpd capacity.

Speaking on the continued importation of fuel after a meeting in the State House, Alhaji Aliko Dangote, President and Chief Executive (CE) of Dangote Group, at the meeting with President Bola Ahmed Tinubu Tuesday, in the State House, Abuja, once again, raised the concern.

President Tinubu had summoned Alhaji Dangote and other stakeholdets, including Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister if the Economy; Malam Mele Kyari, Group Chief Executive Officer (GCEO) of NNPCL; Mr. Zacch Adedeji, Executive Chairman of Federal Inland Revenue Service (FIRS); and Sen. Abubakar Atiku Bagudu, Honourable Minister for Budget and National Planning, among others.

Dangote reportedly stated: “I have a refinery, I鈥檓 not in retail business. If I鈥檓 in retail business then you can hold me responsible.

“But what I鈥檓 saying is that the retailers should please come forward and pick (petrol).”

He also said: “If they don鈥檛 come forward and pick, what do you want me to do?

鈥淪o, I am expecting either the NNPCL or the marketers to stop importing; they should come and pick because we have what they need. And as they move, I will be pumping.”

Consumers, analysts, other stakeholders speak

Sequel to the NNPCL latest petrol price increment, energy consumers and analysts have expressed confusion over the development, especially since crude oil prices in the international market have dropped approximately eight percent to $72 per barrel from $78 per barrel, according to report.

Expressing opinions over the development, Nigerian energy consumers have taken to the social media to vent their frustrations over the new fuel price increase.

Godwin Onoghokere, an X user, lamented the relentless rise in fuel costs.

Onoghokere wrote: “President Tinubu increased fuel pump prices today (Tuesday). Recently NNPC hiked fuel prices to about N1,030 per litre in Abuja and N998 in Lagos. “This new increment will see Nigerians in Abuja and Lagos buy petrol for N1,060 and N1,025 per litre respectively.”

Certain Jeremiah Adamu also expressed a sense of resignation over the government鈥檚 moves.

He stated: “Nigerians don鈥檛 care anymore on the issue of Tinubu APC fuel increase.

鈥淚f he likes, as Minister of Petroleum, he should take the fuel pump price to N5,000 per litre. The filling stations are already empty.鈥�

Others, including Makyur Benjamin, called for action, stating, “Truth be told, Nigerians are the real problems of this country.

“As they are increasing the price, we should learn to stay away from the stations.”

鈥淭he fuel pump price has risen to N1,350. I forecast it will exceed N1,500 officially prior to the Christmas holiday. This surge is troubling,鈥� posted Zaki Chimin.

Among several others in the the digital space, Jabi Dregs wrote: 鈥淭here has been no light in the north for the past seven days or so.

鈥淢ost businesses will hit rock bottom as capital is lost in damaged goods. Fuel pump prices have jumped again today (Tuesday)! But you all are still arguing about football since last night.鈥�

鈥極il market is fully deregulated鈥�: Stakeholders

Just as some have expressed reservations over the latest price hike, other consumers have defended the Federal Government鈥檚 actions as part of a deregulated oil market in Nigeria.

Utor Celestine wrote: “The market is fully deregulated. It鈥檚 one of the features of a free market. Market forces control the price now.”

Government should consider N100bn offer to stabilise petrol price: Gillis-Harry, Oil Chief

Billy Gillis-Harry, President of Petroleum Retail Outlets Owners Association of Nigeria, was also quoted to have said, “the market price has not settled yet.

Gillis-Harry stated: “The situation is a pathetic one, and we hope the President will call us to negotiate the N100bn offer we have requested to stabilise the price of petrol.

“It will give us a guarantee of alternative sourcing of products.鈥�

Commenting on the development, Joseph Obele, National Publicity Secretary, Petroleum Retail Outlet-Owners Association of Nigeria, said members of the association had been buying PMS from the NNPC at the rate of N1,040 per litre before the oil company鈥檚 price hike Tuesday.

Obele also affirmed that the NNPCL was yet to issue “a memo announcing the price increase”, nor has it changed the price on the purchasing portal.

He stated: “We have not received a memo from the NNPC. It is circulating on social media, the news regarding price increment.

“But in our national headquarters, we have yet to get a memo to that effect, and it has yet to be reflected on our buying portal.”

The industry top stakeholder note: “The retail outlet owners or marketers licensed by the NNPC have a buying portal, called the ‘NNPC Retail Buying Express’ where we book products, and the amount on that portal as of this hour is still the old one.

“However, there are indications that the price will have an upward review in the next few days, but we are yet to see it on our portal.”

According to Obele, while the marketers in Port Harcourt, Rivers State capital, bought a litre for N1,040, those in Lagos got the product for around N1,020 and N1,030.

He further explained: “Though our portal rate has not changed, there are indications that we are on the verge of another price hike.

“We have permutations in the sector that make us ascertain when we are anticipating an upward review; and from all indications, there might be a review in the next few days because we are aware that the NNPC retail outlets in Lagos and Abuja have adjusted prices in the early hours of today (Tuesday).”

Yet, checks at the NNPCL filling station at Ikotun, Lagos, petrol sold for N1,025 per litre Tuesday.

Likewise, the NNPCL filling station along Ogudu Expressway dispensed petrol at N1,025 per litre, whereas a number of vehicles were in the queue to buy the product Tuesday, report said

Reacting to the latest increase in PMS price by NNPCL also, Segun Kuti-George, National Vice-President, Nigerian Association of Small-Scale Industrialists, reportedly submitted that the petrol price increase would trigger more hardship in the West African country.

Kuti-George averred: “It will increase the cost of production, which will in turn, increase prices of goods and services.

“Hence, it will drive inflation up further and will increase the cost of local goods, hence people will resort to foreign goods if they are cheaper than local goods, and this would lead to further collapse of local industry.

鈥淭he cost of goods will go up, the cost of transportation will go up and that would affect the prices of food, which will mean further hardship to the people.鈥�

In his submission on the price hike, Dele Oye, National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), decried the fuel hike.

Oye stated: 鈥淎s the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, we feel compelled to address the recent decision by the Nigerian National Petroleum Corporation to increase the price of Premium Motor Spirit from N998 to N1,025 in Lagos and N1,060 in Abuja.

鈥淲hile we understand the complexities of the market and the need for adjustments, we must lament the broader implications of this decision.鈥�

Despite the recent reductions in international crude oil prices, Nigerians were unable to benefit due to the endless depreciation of the Naira, stated he.

Oye observed: 鈥淭his persistent decline in the currency鈥檚 value is largely a product of poor management and ineffective monetary policies by the Central Bank of Nigeria, which means that any global price relief is negated by rising domestic fuel prices.

鈥淭he correlation between the value of the Naira and the international crude oil market prices is undeniable. Until this relationship is addressed, we will continue to bear the burden of escalating costs.鈥�

He said: “We, however, condemn this approach due to its adverse effects on businesses and consumers alike.

“The increased fuel prices will undoubtedly lead to higher transportation fares, further straining household budgets and increasing the cost of goods and services across various sectors.”

Oye added: “This reinforces inflationary pressures that are already affecting all aspects of life in Nigeria.

“We urge the administration to prioritise the stabilisation of the naira as a means of mitigating inflation and supporting the economic circumstances of everyday Nigerians.”

Social considerations more critical than economic policy process – Dr. Yusuf

Speaking on the development, Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise (CPPE), also said the Nigerian Government needed to consider the welfare of consumers in policies surrounding energy prices in the economy.

Yusuf said: “The Nigerian economy is highly vulnerable to volatilities in energy prices and the exchange rate.

“Those two volatilities need to be carefully managed by the policymakers.

“As far as possible, those volatilities should be significantly moderated or reduced.鈥�

The expert, therefore, urged balance in economic reforms of the current administration, as he called for a more sustainable approach.

鈥淓ven within the context of the economic reform agenda, we (policy makers) should be conscious of ensuring a balance between commercial, fiscal and social objectives.

鈥淭hose three are critical to an economy that will make progress sustainably and (policymakers ought to) take the need for inclusion into consideration,” he said.

The Director of CPPE as well submitted: “You need to be careful to not have an economy that leaves too many people behind.

“Social considerations in the economic policy process are as important as fiscal and commercial considerations

鈥淭hat balance is very important. The government needs to commit a lot more to reducing these two critical volatilities.鈥漝o_widget id=heateor_sss_sharing-2]